What is PM SVANidhi scheme? Check eligibility, benefits and steps to apply

Prime Minister Narendra Modi, in his Independence Day speech on Friday, highlighted a series of welfare initiatives aimed at empowering the most disadvantaged sections of society.

Among these, the PM SVANidhi Yojana was mentioned as a key programme supporting street vendors. Launched in the wake of the COVID-19 pandemic, the scheme provides financial assistance to street vendors across India to restart and expand their businesses, which were severely impacted by the lockdown.

What is PM SVANidhi scheme?

The PM SVANidhi scheme, officially known as Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi, is a small credit facility launched by the Indian government on 1 June 2020. It offers collateral-free working capital loans of up to ₹10,000 to eligible vendors whose livelihoods were affected by the pandemic.

Who can apply under the PM SVANidhi scheme?

The PM SVANidhi scheme is designed to support a wide range of individuals and small businesses operating in urban areas, including: 

• Street vendors, hawkers, and small traders operating in urban areas.
• Vendors selling a variety of goods such as fruits, vegetables, and food items.
• Service providers like cobblers, barbers, and other such individuals.
• Small retailers and hawkers.

• Vendors who were forced to relocate or were affected by the COVID-19 restrictions.

Key features and benefits of PM SVANidhi scheme

The PM SVANidhi scheme stands out for its vendor-friendly features:

• Collateral-free loan amount: It provides a working capital loan of up to ₹10,000 in the first cycle without any collateral.
• Subsequent loans: Upon timely repayment of the first loan, vendors become eligible for a second loan of up to RS 20,000 and a third loan of up to ₹50,000 to help them expand their businesses.
• Interest subsidy: A 7% annual interest subsidy is credited to the vendor’s bank account on a quarterly basis.

• Loan repayment: The loan has a tenure of 12 months with flexible repayment options
• Processing Fee: The scheme does not charge any processing fee, making it more accessible to financially vulnerable vendors.

How to apply for PM SVANidhi scheme?

The PM SVANidhi scheme operates through multiple lending institutions, including banks, non-banking financial companies, and small finance banks, making it accessible across urban areas nationwide.

Follow the steps below to apply for the PM SVANidhi scheme:

• Visit the official portal at pmsvanidhi.mohua.gov.in
• Complete the online application by filling in your basic details
• Submit the required documents (Aadhaar, bank account details, vendor certificate)

• Choose your preferred lender from the available options.
• Wait for the approval and loan disbursal.

After applying for the loan, most applications are processed within 7-10 working days, and funds are directly transferred to the applicant’s bank account.