Independent guide. Money Schemes is not a government website and does not take applications or payments. Apply only on the official portal, at a post office, a bank branch or a Common Service Centre.
PM SVANidhi Yojana gives street vendors a working capital loan without any security, starting at 15,000 rupees, then 25,000 rupees once the first loan is repaid, and 50,000 rupees after that, with a 7% yearly interest subsidy for paying on time. Vendors who repay the second loan can also get a UPI linked RuPay credit card under the restructured scheme.
The housing and urban affairs ministry runs it. You can apply on the official portal, at a CSC, through your urban local body (municipality) or at a lending institution. The loan is meant for the business: buying stock, a cart or tools.
At a glance
Run by
Ministry of Housing and Urban Affairs, with urban local bodies and lendersLoan amounts
15,000, then 25,000, then 50,000 rupeesSecurity
None neededInterest subsidy
7% a year on timely or early repayment, credited to the loan accountDigital cashback
Up to 1,600 rupees for set numbers of digital transactionsWho can apply
Street vendors in urban areas with a vending certificate, ID or recommendation letterApply at
pmsvanidhi.mohua.gov.in, a CSC, the ULB or a lender
How the pm svanidhi yojana loan ladder works
| Stage | Loan amount | When you get it |
|---|---|---|
| First loan | 15,000 rupees | On approval of your first application |
| Second loan | 25,000 rupees | After the first is fully repaid |
| Third loan | 50,000 rupees | After the second is fully repaid |
| Credit card | UPI linked RuPay credit card | For vendors who repay the second loan |
These amounts are from the restructured scheme approved by the Union Cabinet, which raised the first two loans from the older 10,000 and 20,000 rupees and extended the lending period. Each loan is repaid in monthly instalments.
Interest subsidy and cashback
The lender charges its normal interest rate. If you pay every instalment on time or early, the government credits a subsidy of 7% a year to your loan account, usually every quarter. There is no penalty for paying early.
On a 15,000 rupee loan, a 7% subsidy works out to a few hundred rupees over a year, which lowers the real cost of the loan. Late payment means you lose the subsidy for that period.
You also earn cashback, up to 1,600 rupees in all, when you take and make digital payments in the numbers the scheme sets. Accept payments by QR code to qualify.
Who is eligible
- Vendors who hold a Certificate of Vending or identity card from the urban local body.
- Vendors found in the city's survey who have not yet received a certificate. A provisional certificate is generated online.
- Vendors left out of the survey, or who began vending after it, with a Letter of Recommendation from the urban local body or town vending committee.
- Vendors from nearby peri urban or rural areas who sell in the city, with a Letter of Recommendation.
Vegetable and fruit sellers, tea stalls, cobblers, barbers on the pavement, laundry carts and similar street businesses are covered.
Documents to keep ready
- Aadhaar, with the mobile number linked for OTP. The portal uses Aadhaar e-KYC.
- Vending certificate, vendor ID or Letter of Recommendation.
- Bank account details. A Jan Dhan account works.
- Voter ID or other ID if the lender asks.
If the name on your vending certificate is spelt differently from Aadhaar, get it corrected at the municipal office first. Lenders often hold an application for such a mismatch, and it is quicker to fix before you apply.
How to apply
- Open pmsvanidhi.mohua.gov.in and choose to apply for a loan, or visit a CSC.
- Verify your mobile with OTP and enter your vendor survey reference or certificate number.
- If you have neither, apply for a Letter of Recommendation first through the same portal.
- Complete Aadhaar e-KYC and fill business details, address and bank account.
- Pick a lender. The application goes to it and to the urban local body.
- The lender checks and disburses into your account. Track the application on the portal with your mobile number.
When things go wrong
| Hurdle | Reason | Way out |
|---|---|---|
| Not found in survey | Started vending after the survey | Apply for a Letter of Recommendation |
| Application pending with lender | Lender checks not done | Visit the branch or choose another lender if allowed |
| Subsidy not credited | One or more instalments late | Pay on time from now; subsidy is per period |
| Cashback missing | Not enough qualifying digital transactions | Use the QR code for sales and purchases |
Svanidhi yojana kya hai, and what to compare it with
In short, it is small business credit without security for street sellers in towns. Artisans and craft workers have a different scheme, PM Vishwakarma, with training and toolkit support. Small food units can look at PMFME. Only the municipality and the official portal can issue the vending papers; agents who charge a fee for them are not part of the scheme.
Frequently asked questions
How much loan does pm svanidhi yojana give?
15,000 rupees first, then 25,000 rupees, then 50,000 rupees, each after the earlier loan is fully repaid.
Is any security or guarantor needed for a svanidhi yojana loan?
No. The loans are collateral free.
What is the interest rate?
The lender's normal rate applies, but timely repayment earns a 7% yearly interest subsidy credited to your loan account.
I have no vending certificate. Can I still apply?
Yes. Apply for a Letter of Recommendation from your urban local body through the portal, then apply for the loan.
Can rural vendors apply for pradhan mantri svanidhi yojana?
Vendors from nearby areas who sell in a town can apply with a Letter of Recommendation from the urban local body.
Who gets the credit card?
Vendors who repay their second loan can get a UPI linked RuPay credit card under the restructured scheme. Ask your lender about its limit.
Official sources
- PM SVANidhi official portalpmsvanidhi.mohua.gov.in
- Ministry of Housing and Urban Affairsmohua.gov.in
Rules, amounts and portals can change. Check the official source before you apply or deposit.