- By Shreyansh Mangla
- Wed, 08 Oct 2025 06:52 PM (IST)
- Source:JND
PM SVANidhi Yojana: The Pradhan Mantri Street Vendor's Atmanirbhar Nidhi (PM SVANidhi) scheme was launched on June 1, 2020, by the Ministry of Housing and Urban Affairs to help vendors hit by the Covid-19 pandemic. The scheme was a micro credit facility, which was designed specifically for the street vendors, suiting their minimal needs.
The scheme's name, 'Svanidhi,' stands for a phrase very close to what means a 'giver of water.' It is a phrase made on a clever play on words as "Su" stands for 'good' and "Nidhi" is a Sanskrit word meaning 'wealth'. When you combine them with 'Daan' (which means 'donation'), you get 'Sunidhi-daan,' meaning a life-giving force.
PM SVANidhi Yojana Benefits
The PM SVANidhi Yojana includes a collateral-free loan of Rs 10,000 and a subsidised interest of 7 per cent upon timely repayment. This is an incentive-based scheme, where beneficiaries are incentivised on the basis of timely repayment of loans and on using digital payment services of the government, like the UPI. The vendors who make a first-time repayment, become eligible for a second loan, and then later on, the vendors would be eligible for a third loan of Rs 50,000.
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PM SVANidhi Scheme: Who is eligible?
The scheme is open to all street vendors in urban and semi-urban regions, who were vending on or before March 24, 2020. They must have a Certificate of Vending or a Letter of Recommendation.
Age limit: The beneficiary must be between 18 and 60 years of age.
How much amount is lent?
The first loan amount is up to Rs 10,000. If it is found that the vendor has made a timely repayment of the loan, then the lending amount could be increased to Rs 20,000 the next time. If the vendor makes another timely repayment, he gets a bonus increment of the lending amount of up to Rs 50,000.
What are Interest Rate & Subsidy on the scheme?
On the first loaned amount, there would be a 7 per cent interest subsidy on regular repayment. The subsidy is directly transferred to the vendor's bank account.
How to apply for the loan?
One can apply for the Svanidhi scheme through both offline and online methods. Online methods include visiting the PM SVANidhi portal and registering with your personal and financial details.
Offline methods include a Common Service Centre (CSC) or a Banking Correspondent/Agent of a Micro Finance Institution, who would visit your home, and fill out the details after a quick round of questions.
Is there any registration fee for PM Svanidhi Scheme?
Please note that registering for the PM Svanidhi Scheme is absolutely free of any charge. There is no processing or application fee whatsoever.
What documents are required for PM Svanidhi Scheme?
One needs to have an Aadhaar card and a Certificate of Vending or Letter of Recommendation for registration.
Multiple Applications
Individuals are also allowed to make multiple applications by applying for subsequent loans after timely repayment of previous loans.
Loan Repayment
The first loaned amount has to last up to one year. While the second loaned amount can last up to 18 months. The third loan lasts up to 36 months. Repayment is done by paying equal monthly instalments (or EMIs).
What is used as 'collateral'?
One great feature of this scheme is that vendors are provided loans without the need for any kind of need for any collateral.
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How is the loaned amount used?
The loan amount is intended for business-related working capital needs only.
What are some additional benefits of the scheme?
There are many cashback incentives for vendors who make great use of digital transactions. Moreover, it promotes digital payments and financial inclusion among street vendors to bring vendors into the formal banking system.