PM SVANidhi Scheme: Eligibility, Benefits, Documents, Application Process

11^th Jan 2026...

Published By : Team 811

PM SVANidhi Scheme Latest News

The government has formally extended the lending period of PM SVANidhi beyond December 2024. Now valid up to 31 March 2030.
Under the restructured plan, loan amounts have been increased, i.e., the first tranche is now up to an amount of ₹15000 [₹10000] and the second tranche up to ₹25000 [₹20000]. The third tranche remains at ₹50,000.

PM SVANidhi Scheme Key Takeaways

The scheme offers collateral-free working capital loans starting from ₹10,000.
Timely repayment provides interest subsidies (7% per annum) and access to higher loan slabs (₹20,000 to ₹50,000).
Street vendors in urban, peri-urban, and rural towns notified as census towns can apply.
The PM SVANidhi apply online process is available through the official portal and ULBs (Urban Local Bodies).

Prime Minister Street Vendor's AtmaNirbhar Nidhi or PM SVANidhi is a microcredit scheme that is implemented by the Indian government's Ministry of Housing and Urban Affairs. The goal of the program is to provide the street vendors whose income was affected with low-cost working capital loans in order to open and expand their small businesses.

The scheme has digital transactions, financial inclusion, and assists vulnerable vendors who are instrumental in India's unofficial urban economy as its priority.

What is PM SVANidhi?

Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) is a central government loan assistance programme: it comprises small collateral-free working capital loans given to eligible street vendors.

The loan is repayable over 1 year and renewable with increased loan amounts to borrowers with records for timely loan repayments. The scheme is being undertaken through Urban Local Bodies (ULBs) and partner banks while MoHUA takes care of its administration and approvals.

Who Benefits from PM SVANidhi?

The target for the loan scheme is people selling goods or providing services from the streets, footpaths, or small temporary structures.

Street vendors and hawkers.
Rehri and thela operators.
Sellers of fruits and vegetables, foodstuffs, clothes, and domestic goods
Service providers, eg, Laundry workers, artisans, barbers, cobblers.
The government informed vendors operating in urban, peri-urban, and census towns.

Key Features & Benefits of PM SVANidhi Scheme

PM SVANidhi loan scheme benefits include various types of support to ease credit access for the street vendors. These include:

Collateral-free initial working capital loan of Rs. 10,000.
Borrowers who repay on time become eligible for a loan of Rs 20,000 and later on Rs 50,000.
A subsidy of 7% per annum is credited directly into the borrower's account on timely repayment of the loan.
Cashback of Rs. 100 per month for using digital payment platforms.
No Penalty for Early Repayment: The borrowers are not charged anything for pre-closure.

The objective of the scheme is to bring the informal vendors under formal financial systems through the verified ULB processes.

With a Kotak811 Zero Balance Digital Savings Account, vendors can manage their PM SVANidhi loan disbursal, repayment, and subsidy credits from their phone. It also helps maintain a clear record of digital payments required for cashback benefits. Have a query? Get in touch with us.

PM SVANidhi Eligibility Criteria

To avail the loan scheme, the applicants should satisfy the following eligibility criteria:

Must be a street vendor active on or before 24 March 2020.
Must possess a Certificate of Vending, Vending ID Card, or provisional certificate from the ULB.
Vendors who do not have certificates can apply by means of a Letter of Recommendation (LoR) issued by the ULB or Town Vending Committee.
Must have a valid Aadhaar and fill in e-KYC as per the requirements of banks.
Must have an active savings bank account in order to receive the loan amount and the subsidies

Exclusions

Applicants who are unable to demonstrate vending activity before 24 March 2020 cannot apply.
Vendors operating outside the notified urban, peri-urban, or census town areas may not be considered eligible.
Applications that are not properly verified for KYC, LoR, and ULB will not be approved.

Documents Required for PM SVANidhi

The documents required under the scheme may vary depending on the type of street vendor and whether the applicant is applying for the first loan or a subsequent loan.

For 1st Loan

KYC documents required for both categories include:

Aadhaar Card
Driving License
MNREGA Card
PAN Card
Voter Identity Card

Specific to Category A and B vendors:

Certificate of Vending
Identity Card

Specific to Category C and D vendors:

Letter of Recommendation

Documents required for a Letter of Recommendation include:

A duplicate of the passbook or account statement.
A copy of your membership card or any other documentation proving you are a vendor.
Letter of request to ULB.

For 2nd or Subsequent Loan

A Loan Closure Document for the previous loan.

Application Process for PM SVANidhi

The application process for the scheme can be done both online and offline.

PM SVANidhi Apply Online

Visit the official PM SVANidhi portal.
Select the “Apply for Loan” option.
Enter Aadhaar-linked mobile number and complete OTP verification.
Provide a vending certificate or select the LoR request if required.
Fill out the scheme loan application form.
Upload KYC documents.
Choose the partner bank and submit the loan request.

PM SVANidhi Apply Offline

Visit a local bank, Non-Banking Financial Company (NBFC), or Microfinance Institution (MFI) and request an application form.
Complete the form with your basic details.
Add all the relevant KYC and other needed documents.
Submit the completed form.

Verification by Authorities

ULB verifies vendor details through field inspection or existing records.
The bank conducts e-KYC and credit checks.

On approval, the loan is sanctioned and credited to the vendor’s account.

Check the Status of PM SVANidhi

Applicants can check their scheme updated status online:

Go to the official government portal and log in using the registered mobile number.
Go to the "Application Status" section.
Enter the application ID to check for the approval stage, verification updates, or disbursal confirmation.

Note: Some banks and ULBs are also allowing status check through individual portals or customer service centres.

Benefit Disbursal of PM SVANidhi Scheme

Once approved, the loan amount is credited directly to the savings bank account of the applicant. Interest subsidy is credited quarterly on the condition that the repayment of interest is made on schedule.

Digital transaction incentives are transferred on a monthly basis for fulfilling the required number of transactions. If the vendor makes timely repayment, they automatically become eligible for the next loan tranche under the PM SVANidhi loan scheme.

Conclusion

PM SVANidhi is a central government scheme that provides support for India's street vendors in the form of collateral-free finance, interest subsidy, and digital payments incentives. The scheme helps vendors to rebuild their livelihoods by offering loans from ₹10,000 to 50,000.

With a simple application process and progressive loan enhancements, PM SVANidhi continues to provide stable financial assistance to vulnerable micro-entrepreneurs across urban and peri-urban regions.

FAQs on PM SVANidhi Scheme

1. Can I apply without a vending certificate?

Yes. If you do not have a certificate, you can ask for a Letter of Recommendation (LoR) from your ULB in order to apply.

2. Can I apply online without visiting the ULB?

Yes, you can begin the PM SVANidhi apply online process on the official portal. However, ULB verification may still be required.

3. Is collateral required for the loan?

No, the loans are fully collateral-free.

4. How do I obtain the subsidy for interest?

You receive a 7% interest subsidy directly in your bank account after repayment of dues on time.

5. Can I apply again if I was rejected for the loan earlier?

Yes, you may reapply after completing the correct documentation and ULB checks.

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Disclaimer
This article is intended for general informational purposes only. The information provided is based on publicly available sources and government notifications as available at the time of writing. Government schemes, eligibility criteria, benefits, coverage limits, and implementation details are subject to change, modification, or discontinuation at the discretion of the respective government authorities without prior notice.
Kotak Mahindra Bank Ltd. (“Bank”) does not guarantee the accuracy, completeness, or current validity of the information contained herein and does not assume any responsibility for discrepancies arising due to subsequent policy updates or revisions. The views expressed in this article do not necessarily reflect the views of the Bank or its employees and should not be construed as legal, medical, financial, or professional advice.
Readers are advised to verify the latest details directly from official government portals or authorized sources before relying on or acting upon the information provided. Kotak Mahindra Bank Ltd., its directors, employees, or contributors shall not be liable for any loss or damage arising from the use of or reliance on the information contained in this article.