Street vendors are among the hardest groups to serve through mainstream lending, no fixed address for collateral verification, often no formal income documentation, and loan amounts too small for most banks to bother with. PM SVANidhi was built specifically to solve this, with a working capital loan structure that scales up through repeated on-time repayment.
The Three-Tier Loan Structure
| Loan Tier | Amount | Condition |
|---|---|---|
| First loan | ₹10,000 | 1-year tenure, available immediately on eligibility |
| Second loan | ₹20,000 | Available after fully repaying the first loan |
| Third loan | ₹50,000 | Available after fully repaying the second loan |
Who Qualifies
- Urban street vendors operating in towns, cities, or municipalities, this scheme is specifically urban, rural vendors fall under a different scheme (NRLM/DAY-NRLM or state programs)
- Vendors holding a Certificate of Vending issued by the Urban Local Body (ULB)
- Vendors surveyed during the Town Vending Committee census but not yet issued a certificate, still eligible with a Letter of Recommendation
- Vendors who missed the ULB survey entirely can still get a Letter of Recommendation from the ULB or Town Vending Committee to apply
- An Aadhaar number linked to an active mobile number is mandatory
The 7% Digital Repayment Cashback
The bank charges its standard lending rate on the loan itself, typically 12% to 24% depending on whether you borrow through a bank, NBFC, or microfinance institution. But the government separately provides a 7% annual interest subsidy, paid as cashback directly to your bank account, credited quarterly, when you repay digitally through UPI, BHIM, or RuPay. This effectively lowers your real cost of borrowing, but only if you make digital repayments rather than paying in cash.
No Certificate of Vending? You Can Still Apply
This is the detail most vendors don't realize: if you were never surveyed during the ULB census and have no formal Certificate of Vending, a Letter of Recommendation from your Urban Local Body or Town Vending Committee is accepted as an alternative. Visit your Municipal Corporation or Town Panchayat office to request one rather than assuming you're ineligible without a formal certificate.
How to Apply
- Get your Certificate of Vending or a Letter of Recommendation from your Municipal Corporation or Town Panchayat.
- Apply online at pmsvanidhi.mohua.gov.in, or at a nearby bank branch, Common Service Centre (CSC), or microfinance institution.
- Complete Aadhaar eKYC verification, via OTP or biometric, ensure your Aadhaar is linked to your active mobile number beforehand.
- Once verified, the ₹10,000 first loan is disbursed directly to your bank account, typically within 3 to 7 working days.
- Repay weekly or monthly through digital modes to earn the 7% annual cashback, credited quarterly.
Frequently Asked Questions
Can I apply for PM SVANidhi without a Certificate of Vending?
Yes, a Letter of Recommendation from your Urban Local Body or Town Vending Committee is accepted in place of a formal certificate if you weren't surveyed during the ULB census.
Is PM SVANidhi available for rural vendors?
No, this scheme is specifically for urban street vendors in cities, towns, and municipalities. Rural vendors may be eligible under NRLM/DAY-NRLM or specific state government schemes instead.
How is the 7% cashback actually paid?
The government pays a 7% annual interest subsidy directly to your bank account, credited quarterly, provided a minimum share of your repayments happen through digital modes like UPI, BHIM, or RuPay.
See the full PM SVANidhi scheme details, or talk to us for help with your application.
