PM SVANidhi Scheme: An Array for Street Vendors; Understanding Its Impact and Eligibility, Benefits, and Application Procedure
News Article: PM SVANidhi Yojana Offers Affordable Loans to Urban Street Vendors
The PM SVANidhi Yojana, launched on June 1, 2020, continues to provide a lifeline for street vendors, small businesses, and hawkers affected by the COVID-19 pandemic. This collateral-free working capital loan scheme, overseen by the Ministry of Housing and Urban Affairs (MoHUA) and implemented by the Small Industries Development Bank of India (SIDBI), offers micro-credit loans to help vendors resume their livelihoods and become self-reliant.
The key features of the PM SVANidhi scheme include affordable loan amounts, flexible repayment terms, and an annual interest subsidy. The loan amounts range from ₹10,000 for the first tranche, ₹20,000 for the second, and ₹50,000 for the third, with the possibility of further expansion. Loans are repayable in monthly installments over a tenure of one year for the first tranche, with subsequent terms depending on repayment. A 7% per annum interest subsidy is credited quarterly via Direct Benefit Transfer (DBT) for timely or early repayment.
Digital benefits are also provided to encourage financial inclusion and digital transactions. Cashbacks are offered for digital payments made by beneficiaries, and the scheme links street vendors to the formal banking and digital payment ecosystem, helping them transition into formal credit systems.
Eligibility for the PM SVANidhi scheme extends to street vendors operating in urban areas, including adjoining peri-urban and rural areas. The scheme targets vendors affected by COVID-19 impacts, with hawkers, small business owners, and similar informal sector workers involved in street vending also eligible.
Applications are generally processed through designated urban local bodies (ULBs) and are submitted via the official portal at pmsvanidhi.mohua.gov.in. Vendors are required to register and submit documents proving their status as street vendors. Loans are disbursed through banks linked to the scheme, with seamless integration of digital payment systems like UPI to enhance transparency and ease of transactions.
As of mid-2025, over 68.11 lakh street vendors have benefited under the scheme since inception, including 30.97 lakh women vendors, representing approximately 45% of beneficiaries. The scheme is recognized by the Prime Minister as a key grassroots initiative empowering street vendors and integrating them into the digital financial ecosystem.
Recently, Finance Minister Nirmala Sitharaman announced that the PM SVANidhi scheme for street vendors will be revamped with enhanced loans from banks and UPI-linked credit cards with a Rs 30,000 limit. The revamp aims to further support small businesses, small retailers, hawkers, and vendors in urban areas.
In his Independence Day speech on August 13, 2025, Prime Minister Narendra Modi mentioned the PM SVANidhi Yojana as a testament to the government's commitment to supporting the urban informal sector. Eligible borrowers can apply for the PM SVANidhi scheme to receive financial assistance for their small businesses, retail businesses, hawking, or street vending. The loan has a tenure of 12 months with flexible options for repayment. Applications are processed within 7-10 working days, and the funds get directly transferred to the applicant's bank account.
In conclusion, the PM SVANidhi Yojana continues to play a crucial role in promoting financial inclusion and livelihood restoration for urban informal sector vendors. With its collateral-free loans, flexible repayment terms, and digital benefits, the scheme offers a valuable opportunity for street vendors, small businesses, and hawkers to rebuild and grow their businesses.
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