PM SVANidhi Scheme: The central government runs numerous welfare schemes to benefit the public. This particular scheme was launched specifically for street vendors. It is a type of micro-credit scheme introduced in 2020 by the Ministry of Housing and Urban Affairs. Under this scheme, beneficiaries are provided with a collateral-free loan for a one-year period.

We are referring to the PM SVANidhi scheme, which Prime Minister Narendra Modi launched to empower marginalised sections of society. The government decided to implement this scheme in the wake of the COVID-19 pandemic, enabling street vendors across India to revive and expand their businesses. Let us explore how to apply for this scheme in this article.

What is the PM SVANidhi Scheme?
The PM SVANidhi scheme—formally known as the PM Street Vendor’s Atmanirbhar Nidhi—is a small loan facility launched by the Government of India on June 1, 2020. It provides collateral-free working capital loans to eligible individuals whose livelihoods have been adversely affected.

How much loan does the government provide?
Urban street vendors can avail themselves of working capital loans for a one-year tenure, which are repayable in monthly instalments. Under this scheme, the loan amount is disbursed in stages: an initial loan of ₹15,000 for a 12-month period; a subsequent loan of ₹25,000 for 18 months; and a third tranche of ₹50,000 for 36 months. In total, the government provides loans amounting to ₹90,000.

Who can apply?
The PM SVANidhi scheme is designed to support various individuals and small businesses operating in urban areas, including the following categories of people: Street vendors, hawkers, and small traders operating in urban areas benefit from this scheme. It extends to sellers of fruits, vegetables, and food items, as well as service providers like cobblers, barbers, and similar professionals, along with small retailers and hawkers.

How ​​to apply for the PM SVANidhi Scheme
The PM SVANidhi scheme is implemented through various lending institutions, including banks, Non-Banking Financial Companies (NBFCs), and small finance banks, making it accessible across urban areas nationwide.

Step-by-step application process
First, visit the official portal at pmsvanidhi.mohua.gov.in.
Fill in the required details and submit the application online.
Submit necessary documents such as your Aadhaar card, bank account details, and vendor certificate.
Select your preferred lender from the available options.
Wait for approval and loan disbursement.
Once the loan application is processed, the funds are transferred to your bank account within 7 to 10 days.