PM SVANidhi Yojana: The Central Government’s PM SVANidhi scheme is proving to be a game-changer to economically empower small businesses and street vendors. Providing loans up to ₹ 90,000 without any guarantee and in easy installments, this scheme aims not only to provide financial assistance but also to connect small traders with the digital economy. Let us know about the complete process of this scheme and its benefits.

What is PM SVANidhi Scheme?

This scheme was started mainly for the street vendors so that they can start or expand their small business. For this loan, you do not need to give any kind of guarantee (collateral) and the application can be made only by doing e-KYC through Aadhar card.

Account of ₹90,000 (3 installments)

You get this money not at once, but in three phases.
The first installment is ₹15,000 (earlier it was ₹10,000), the second installment is ₹25,000 (after timely repayment of the first installment) and the third installment is ₹50,000 (after successful repayment of the second installment). Overall you can take a loan up to ₹ 90,000.

Special features of the scheme

Loan without collateral: You do not need to mortgage any of your assets.
Interest subsidy: If you pay the installments on time, the government gives you an annual interest subsidy of 7%, which is deposited directly into your bank account.
Digital Rewards: If you use digital transactions (like UPI), you also get monthly cashback.
Duration: The government has extended this scheme till 31 March 2030.

Who can get this loan?

All those people who sell goods on the roadside (like fruits and vegetables, tea shops, barbers, cobblers etc.).
The applicant must have a Vending Certificate (CoV) or identity card issued by the Municipal Corporation/Municipality.
If there is no certificate, then application can also be made by taking a letter of recommendation from the local body (ULB).