PM SVANidhi Scheme: A Lifeline for India’s Street Vendors—Eligibility, Benefits, and How to Apply

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In his Independence Day address from the Red Fort, Prime Minister Narendra Modi reaffirmed the government’s commitment to inclusive growth and economic empowerment by spotlighting the PM SVANidhi scheme—a transformative initiative aimed at uplifting street vendors across India. As urban informal workers continue to recover from the economic shocks of the COVID-19 pandemic, this scheme offers a crucial financial lifeline.

What Is PM SVANidhi?

The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme was launched on June 1, 2020, by the Ministry of Housing and Urban Affairs. It provides collateral-free working capital loans to street vendors, enabling them to restart and expand their businesses post-pandemic.

The scheme is designed to formalize and financially empower street vendors—those who sell fruits, vegetables, snacks, tea, clothes, footwear, and provide services like barbering, cobbling, and laundry in urban areas.

Eligibility Criteria

To qualify for PM SVANidhi, applicants must meet the following conditions:

Must be a street vendor operating in urban areas on or before March 24, 2020.
Should possess a Certificate of Vending or Identity Card issued by the Urban Local Body (ULB).
Vendors identified in ULB surveys but lacking formal documentation can receive a Provisional Certificate of Vending.
Vendors from peri-urban or rural areas vending within ULB limits may apply with a Letter of Recommendation from the ULB or Town Vending Committee.
Those who received one-time COVID assistance or are members of hawker associations may also be eligible.

Key Benefits of PM SVANidhi

The scheme offers a range of vendor-friendly features:

Initial Loan: ₹10,000 collateral-free working capital loan.
Second Cycle: ₹20,000 loan upon timely repayment of the first.
Third Cycle: ₹50,000 loan for further business expansion.
Interest Subsidy: 7% annual subsidy credited quarterly to the vendor’s bank account.
Digital Incentives: Cashback rewards for digital transactions via UPI.
No Processing Fee: Making it accessible to financially vulnerable vendors.
UPI-linked Credit Cards: As per Budget 2025 updates, vendors may soon access ₹30,000 credit limits via UPI cards.

How to Apply for PM SVANidhi

The application process is simple and accessible:

Visit the Official Portal: PM SVANidhi Portal.
Check Eligibility: Identify your vendor category and ensure your mobile number is linked to Aadhaar.
Gather Documents: Certificate of Vending, Identity Card, or Letter of Recommendation.
Fill Application Form: Enter your Survey Reference Number (SRN) and complete the form online.
Choose Lending Institution: Select from banks, NBFCs, or small finance banks.
Loan Disbursal: Approved loans are typically disbursed within 7–10 working days directly to the applicant’s bank account.

Impact So Far

As of 2025, the PM SVANidhi scheme has supported over 68 lakh street vendors, replacing high-interest informal loans with structured financial support. It has helped vendors rebuild their businesses, adopt digital payments, and gain access to formal credit systems.

Why It Matters

Street vendors are the backbone of India’s urban informal economy. They provide affordable goods and services to millions daily. By offering financial inclusion and formal recognition, PM SVANidhi not only boosts livelihoods but also strengthens local economies.

Prime Minister Modi’s emphasis on this scheme during his Independence Day speech signals a continued focus on grassroots empowerment and economic resilience.

Sources: MSN News, ClearTax, PM SVANidhi Official Portal, LiveMint