In a major boost to small businesses and street vendors across India, the Pradhan Mantri Street Vendors’ AtmaNirbhar Nidhi (PM SVANidhi) scheme is helping lakhs of citizens access guarantee-free loans. According to government data, more than 68 lakh street vendors — including fruit sellers, vegetable vendors, laundries, salons, and paan shop owners — have already benefitted from the scheme. So far, over ₹13,790 crore in loans have been disbursed.
Here’s everything you need to know about this transformative government scheme:
What Is PM SVANidhi Scheme?
Launched to promote financial inclusion and make urban street vendors self-reliant, the PM SVANidhi scheme offers collateral-free working capital loans in three phases:
First Loan: ₹10,000 for a 12-month tenure
Second Loan: ₹15,000–₹20,000 for 18 months
Third Loan: ₹30,000–₹50,000 for 36 months
The scheme also provides:
7% annual interest subsidy
Cashback of up to ₹1,200 for eligible digital transactions
Eligibility Criteria
Must have been conducting business before March 24, 2020
Must be certified by the local municipal body
Vendors of fruits, vegetables, tea stalls, small repair shops, and more are eligible
The aim is to bring stability to vendors’ businesses by giving them access to institutional credit — helping them grow and manage their day-to-day operations.
Loan Without Guarantee & Interest Subsidy
One of the scheme’s biggest advantages is that:
No collateral or guarantee is required to avail of the loan
If the borrower pays installments on time, a 7% annual interest subsidy is credited directly to their account
Early repayment attracts a lump sum subsidy
Digital transactions also earn vendors cashback rewards of up to ₹1,200
Who Provides the Loan?
The following institutions participate in the PM SVANidhi program:
Scheduled Commercial Banks
Regional Rural Banks
Small Finance Banks
Cooperative Banks
Non-Banking Financial Companies (NBFCs)
Micro Finance Institutions (MFIs)
Self-Help Group (SHG) Banks
The Small Industries Development Bank of India (SIDBI) is the scheme’s implementation partner. Basic KYC documents such as Aadhaar card, voter ID, PAN, MNREGA card, or driving license are required.
Top 10 Banks Offering Loans Under PM SVANidhi
Canara Bank
Indian Bank
Indian Overseas Bank
Bank of Maharashtra
Where & How to Apply
Official website: www.pmsvanidhi.mohua.gov.in
Mobile App: Available on app stores
You can also apply at your nearest Common Service Centre (CSC) or through a Banking Correspondent in your area
Final Word
The PM SVANidhi scheme continues to be a game-changer for street vendors in India, giving them access to affordable credit and the opportunity to scale their businesses. With the government further streamlining the process, now is the perfect time for eligible vendors to apply and benefit from this visionary initiative.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
