Government Scheme Helping Small Vendors Access Interest-Subsidized Loans
Street vendors form the backbone of India’s urban economy. From selling fruits, vegetables, food, textiles, and footwear to offering small services such as tailoring, cobbling, and laundry, these workers keep city life moving. To support this vital workforce, the Government of India introduced the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme.
Launched on 1 June 2020 by the Ministry of Housing and Urban Affairs (MoHUA), the scheme provides collateral-free loans to street vendors. In 2025, the programme continues to empower vendors by offering loans ranging from ₹10,000 to ₹50,000, helping them revive and expand their businesses.
Objectives of the PM SVANidhi SchemeThe main aim of this initiative is to bring street vendors into the formal financial system while encouraging them to become self-reliant. The scheme also promotes digital transactions by offering up to ₹100 cashback per month for those who use digital payment methods. By easing access to credit, it not only uplifts individual families but also strengthens the urban economy.
Benefits Under PM SVANidhi SchemeCollateral-Free Loans – Vendors can apply for loans of ₹10,000 initially, followed by ₹20,000 and ₹50,000 in subsequent phases.
Affordable Interest Rate – Loans are available at just 7% annual interest.
No Processing Fee – Applicants do not need to pay any processing charges.
Flexible Usage – The loan can be used to purchase raw materials, pay shop rent, or buy equipment.
Repayment Time – Vendors are given up to one year to repay the loan, making it easy to manage finances.
Business Growth Support – The scheme helps vendors stabilize their businesses, generate more income, and create employment opportunities.
The PM SVANidhi scheme is open to different categories of vendors:
Vendors with a valid certificate of vending or official ID card.
Those identified in surveys but yet to receive a certificate.
New vendors who started after the initial survey but hold a Letter of Recommendation (LoR).
Vendors in peri-urban and rural areas with an LoR issued by the local authority.
However, vendors outside the official survey or without proper verification documents are not eligible until they obtain the necessary recommendation.
Step-by-Step Application ProcessApplying for PM SVANidhi is simple and fully digital:
Visit the official website pmsvanidhi.mohua.gov.in.
Click on the Log In option and enter your mobile number along with the captcha code.
Request an OTP and verify your mobile number.
After logging in, select your vendor category and enter your Survey Reference Number (SRN).
Fill in the application form carefully, upload the required documents, and submit.
Download the confirmation page and keep a printout for future reference.
For the First Loan
Category A & B vendors: Certificate of vending and ID card
Category C & D vendors: Letter of Recommendation (LoR)
For all applicants: KYC documents such as Aadhaar, Voter ID, Driving License, PAN, or MGNREGA card
For LoR issuance: Proof such as bank account statement, membership card, or other verifiable evidence
For the Second Loan
Loan closure document from the first loan cycle
For assistance, applicants can refer to the user manual on the official portal or call the toll-free helpline 1800 111 979 (available Monday to Saturday, 9:30 AM to 6:00 PM).
Why This Scheme MattersStreet vendors are often excluded from traditional banking systems due to lack of collateral and financial history. The PM SVANidhi scheme addresses this gap by offering easy, low-interest loans, empowering them to sustain their businesses and improve their livelihoods.
By combining financial inclusion with digital transaction incentives, the scheme is shaping a more resilient and self-reliant urban economy. For many vendors, this initiative means not just survival, but a chance to grow and thrive.
