PM SVANidhi Scheme 2020–2030: Complete Yojana Overview, Loan Amounts, Eligibility, Benefits, and Application Process Explained

The PM SVANidhi Scheme, launched on 1 June 2020 by the Government of India, is a central-sector micro-credit initiative designed to provide collateral-free working capital loans to street vendors across the country. The scheme addresses the financial challenges faced by urban vendors by offering easy-access loans, interest subsidies, and incentives for digital transactions, ultimately aiming to promote financial inclusion and formalize the informal street-vending sector. With its lending period extended until 31 March 2030, the scheme continues to empower millions of street vendors by helping them stabilize and expand their small businesses.

Dates and Objectives of the Scheme

Important Dates

• Launch Date: 1 June 2020
• Extended Lending Period: Up to 31 March 2030
• Loan Tranches: Available continuously within the extended period

Objectives

• To provide collateral-free working capital loans to street vendors.
• To enable vendors to restart, strengthen, or expand their small businesses.
• To encourage digital transactions through cashback incentives.
• To offer interest subsidies to promote timely loan repayment.
• To bring street vendors into the formal financial ecosystem.
• To expand financial support to urban, peri-urban, and census town vendors.

Key Features of the Scheme

• Collateral-Free Loans for street vendors with simple eligibility norms.
• Three-tier loan structure:
  • First tranche: ₹15,000
  • Second tranche: ₹25,000
  • Third tranche: ₹50,000
• 7% Interest Subsidy on timely or early repayment.
• Digital Transaction Incentives: Cashback up to ₹100 per month.
• Extended Coverage to census towns and peri-urban areas.
• Flexible Application Options: Online portals, mobile apps, and bank branches.
• Formal Vendor Identification: Support for vendors without certificates but present in ULB surveys.

Scholarship / Financial Assistance Amount

Although not a scholarship scheme, the financial assistance under PM SVANidhi includes:

Eligibility Criteria

• Must be a street vendor operating in India.
• Must have a Certificate of Vending or a Vendor Identity Card issued by the Urban Local Body.
• Vendors identified in ULB surveys but awaiting certificate issuance are also eligible.
• Vendors from urban areas, peri-urban regions, and census towns are covered.
• Migrant vendors can apply if they meet ULB recognition criteria.

Reservation Policy

• There is no caste-, religion-, or gender-based reservation.
• The scheme is universal for all eligible street vendors.
• Priority is given to survey-identified vendors during approval.
• Women, disabled vendors, and vulnerable groups receive equal consideration.

Distribution of Financial Assistance

• Loans are disbursed directly through banks, NBFCs, MFIs, and other lending institutions.
• Subsidy amount is credited via Direct Benefit Transfer (DBT) to the vendor’s bank account.
• Digital cashback is automatically transferred based on monthly transaction records.
• Vendors receive higher loan tranches after successful repayment of earlier loans.

Application Process (Step-by-Step Guide)

Step 1: Choose Application Method

Applicants can apply through:

• PM SVANidhi official portal
• JanSamarth Portal
• UMANG mobile app
• Nearest bank branch

Step 2: Prepare Required Documents

Keep these documents ready:

• Aadhaar Card
• Voter ID / Driving Licence / MNREGA Card / PAN (any one)
• Vendor ID Card or Certificate of Vending (if available)
• Mobile number linked to Aadhaar
• Bank account details

Step 3: Start Online Application

• Visit the PM SVANidhi or JanSamarth portal.
• Select Apply for PM SVANidhi Loan.
• Log in using Aadhaar-based OTP authentication.

Step 4: Fill in the Application Form

Enter:

• Personal details
• Business/vendor information
• Urban Local Body details
• Bank account details

Step 5: Upload Documents

Upload scanned copies of required ID proofs.

Step 6: Application Verification

• The ULB verifies vendor identity from survey data.
• Banks verify credit eligibility.

Step 7: Loan Approval and Disbursement

• Once approved, the loan is credited to the vendor’s bank account.
• Interest subsidy and cashback are automatically applied after repayment and transactions.