Vegetable vendors, tea stall owners, fruit sellers, and small-scale business owners are an essential part of daily life in India’s cities and towns. However, the biggest challenge these people face is a lack of capital. This was especially true during the COVID-19 pandemic when markets closed, and movement was restricted, severely impacting the income of these small business owners. Recognizing this situation, the central government launched the Pradhan Mantri SVANidhi scheme to empower street vendors financially, enabling them to rebuild their businesses and become self-reliant. This scheme provides easy, collateral-free loans to small vendors, allowing them to continue their work.
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How to Get a Loan Under the PM SVANidhi Scheme
Under this scheme, street vendors receive working capital loans in a phased manner. Initially, a small loan is provided, and upon timely repayment, larger amounts are disbursed in subsequent phases. According to the revised system, the first phase offers a loan of up to approximately Rs. 15,000 (increased from Rs. 10,000). Upon timely repayment, the second phase provides a loan of up to approximately Rs. 25,000, and the third phase offers up to Rs. 50,000. Importantly, this loan is completely collateral-free, meaning no security or property needs to be pledged.
Interest Subsidy and Digital Cashback Reduce the Loan Burden
A major feature of this scheme is that beneficiaries receive an interest subsidy of approximately 7 percent for timely loan repayment. This subsidy is directly transferred to the bank account, reducing the loan burden. In addition, the government also provides cashback to promote digital transactions. Cashback is available up to a certain limit every month for digital payments, providing an additional benefit to small traders.
Additional Financial Support Through UPI-Linked Credit Cards
To further strengthen the scheme, the government has also added the facility of UPI-linked RuPay credit cards. This facility is available to street vendors who have repaid their previous loans on time. The limit on this card can be up to approximately 30,000 rupees. This allows vendors to access funds immediately when needed, ensuring their businesses continue to operate without interruption.
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How to apply for the scheme
Applications for this scheme can be submitted both online and offline. Interested beneficiaries can apply through the official portal or through banks, microfinance institutions, municipal bodies, or Common Service Centers. A street vendor identity card, vending certificate, or a certificate issued by the municipal body is required for the application.









