PM SVANidhi Scheme 2025: Small-scale self-employed street vendors in the country have long faced financial insecurity. To address this issue, the central government launched a special micro-credit scheme for them, called the PM SVANidhi Scheme. The objective of this scheme is to empower street vendors financially by providing them with unsecured, low-interest loans and to promote digital transactions.

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What is the PM SVANidhi Scheme?

PM SVANidhi, or Pradhan Mantri Street Vendors AtmaNirbhar Nidhi Yojana, is a central sector scheme launched by the Ministry of Housing and Urban Affairs on June 1, 2020. This scheme assists street vendors who earn their living by setting up small shops or carts in cities, towns, and surrounding semi-urban areas.

Under this scheme, beneficiaries are initially provided with a working capital loan of up to ₹10,000, which must be repaid within one year. Upon timely payment and digital transactions, beneficiaries are granted interest subsidies, with subsequent loans of up to ₹20,000 and then up to ₹50,000. An interest subsidy of up to 7% is available on the loan. However, the limit has recently been increased. Now, loans of ₹15,000 will be provided in the first phase, ₹25,000 in the second phase, and ₹50,000 in the third phase.

However, with the increase in the limit, small businesses will receive loans of ₹15,000 in the first phase, ₹25,000 in the second phase, and ₹50,000 in the third phase. Creditworthiness is essential to fully benefit from this government scheme.

Objective of the Scheme

The primary objective of the PM SVANidhi Scheme is to provide affordable capital to small vendors so they can expand their businesses and become financially self-reliant. The scheme also encourages digital payments, enabling vendors to integrate into the modern economic system and maintain a strong transaction record.

Who Can Apply

Only vendors who are approved by the Urban Local Body (ULB) are eligible to apply. Vendors who possess a vending certificate or identity card, or a recommendation letter from the ULB or Town Vending Committee, are eligible to apply. This also includes vendors in rural and semi-urban areas operating within the municipal limits.

Required Documents

Documents required to apply for the scheme are based on the vendor category. Vendors who possess a vending certificate or identity card must provide the same documents. Those who do not have the certificate must provide a recommendation letter along with identification documents such as Aadhaar, Voter ID, Driving License, PAN card, etc. Vendors seeking a second loan must have proof of repayment of their first loan.

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How to Apply

The online application process for this scheme is very simple. Interested beneficiaries visit the official website, pmsvanidhi.mohua.gov.in, and log in using their mobile number. They then select their vendor category, enter their survey reference number, and complete the application by filling in the required information. Upon successful verification, the vendor receives the bank loan.