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Employment & Rural LivelihoodOfficial Info Verified
PM SVANidhi — Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi
Central Government micro-credit scheme providing affordable, collateral-free working-capital loans in 3 progressive tranches (₹10,000, ₹20,000, and ₹50,000) with a 7% interest subsidy and up to ₹1,200 annual digital cashback for eligible street vendors.
Department: Ministry of Housing and Urban Affairs (MoHUA), Government of India (implemented in coordination with Urban Local Bodies, Town Vending Committees, Commercial Banks, RRBs, SFBs, and MFIs)
1st Loan Tranche
Up to ₹10,000
Collateral-free, 1-year tenure
2nd & 3rd Tranches
₹20,000 & ₹50,000
On prompt repayment of earlier loans
Interest Subsidy
7.0% Per Annum
Credited quarterly via DBT
Official National Portal
pmsvanidhi.mohua.gov.in
Direct online application & LoR search
Language:
Scheme Overview
What is PM SVANidhi — Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi?
Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi (PM SVANidhi) was launched on 1 June 2020 by the Ministry of Housing and Urban Affairs (MoHUA), Government of India, as a flagship micro-credit economic recovery and livelihood formalization initiative for urban, peri-urban, and rural-adjacent street vendors. The scheme provides a progressive collateral-free working-capital credit facility structured in three escalating tiers: (1) 1st Tranche: Initial working capital loan of up to ₹10,000 with a 1-year tenure; (2) 2nd Tranche: Enhanced credit of up to ₹20,000 upon timely or early repayment of the first loan (tenure up to 18 months); and (3) 3rd Tranche: Growth capital of up to ₹50,000 upon successful repayment of the second loan (tenure up to 36 months). To reduce the interest burden, beneficiaries who repay their EMIs on time receive a 7% per annum interest subsidy credited directly into their bank accounts on a quarterly basis through Direct Benefit Transfer (DBT). Furthermore, vendors who adopt UPI/QR digital transactions earn monthly cashbacks between ₹50 and ₹100 (up to ₹1,200 per year). Street vendors are verified through Urban Local Bodies (ULBs) via Certificates of Vending (CoV), Vendor ID Cards, or Letters of Recommendation (LoR). In West Bengal, street vendors across municipal corporations and municipalities can apply online via pmsvanidhi.mohua.gov.in or through their local municipality/BSK centres for collateral-free credit disbursed directly by participating commercial banks, Regional Rural Banks, Small Finance Banks, and MFIs with CGTMSE credit guarantee coverage.
Primary Purpose:To provide formal micro-credit working-capital loans to urban and peri-urban street vendors without requiring physical collateral, incentivize disciplined timely repayments through a 7% interest subsidy, promote digital QR payments with monthly cashbacks, and build credit histories enabling escalation to higher loan tranches up to ₹50,000.
Key Scheme Objectives
- Provide collateral-free working-capital micro-loans in 3 progressive tranches: ₹10,000, ₹20,000, and ₹50,000.
- Incentivize regular repayment through a 7% per annum interest subsidy credited directly to the vendor’s bank account.
- Reward digital transactions with monthly cashbacks up to ₹100 (up to ₹1,200 per financial year).
- Formalize street vendors into the banking system, building credit scores and enabling socio-economic profiling (SVANidhi se Samriddhi).
Financial Framework
PM SVANidhi Multi-Tier Loan Architecture & Digital Reward Structure
PM SVANidhi is a collateral-free bank working-capital credit facility. Repaying loans on or before the due date unlocks higher loan amounts, zero prepayment penalties, and quarterly interest subsidies.
First Loan Tier
₹10,000
Second Loan Tier
₹20,000
Third Loan Tier
₹50,000
Annual Digital Cashback
Up to ₹1,200
How Vendors Graduate from ₹10,000 to ₹50,000 Credit
1. Tier 1 (₹10,000): Granted to eligible street vendors for 1 year. Timely repayment establishes a formal credit history and releases 7% interest subsidy. 2. Tier 2 (₹20,000): Unlocked immediately upon timely or early full repayment of Tier 1. Repayment period is up to 18 months. 3. Tier 3 (₹50,000): Unlocked after timely settlement of Tier 2 loan, providing major growth capital for business expansion up to 36 months.
Digital Cashback & Monthly Incentive Milestones:
Milestone 1: 50 Digital Transactions / Month
Conducting 50 eligible receipt/payment transactions via UPI/QR code earns a direct cashback of ₹50 per month.
Milestone 2: Additional 50 Transactions (Total 100)
Completing the next 50 transactions earns an extra ₹25 cashback (cumulative ₹75 for the month).
Milestone 3: Additional 100 Transactions (Total 200)
Completing another 100 transactions earns an additional ₹25 cashback, reaching the monthly maximum of ₹100 (₹1,200 per year).
PM SVANidhi vs. West Bengal’s Bhabishyat Credit Card Scheme:
PM SVANidhi is a Central Government micro-credit scheme strictly for urban street vendors offering ₹10,000 to ₹50,000 working-capital loans with 7% interest subsidy. West Bengal’s Bhabishyat Credit Card (BCC) is a state-funded scheme for general youth micro-enterprises offering business loans up to ₹5 Lakh with a 4% subsidized interest rate and 10% government margin subsidy.
Letter of Recommendation (LoR) for Vendors Without CoV
Street vendors who were left out of previous municipal surveys or who started vending later can apply for a Letter of Recommendation (LoR) from their Urban Local Body (ULB) / Town Vending Committee (TVC) on the PM SVANidhi portal to establish loan eligibility.
Eligibility Guidelines
Who is Eligible to Apply?
Review standard qualifying conditions, income limits, and applicable waiver categories. Read our guide on understanding eligibility
Standard Eligibility Requirements
- Street vendors engaged in vending in urban areas, peri-urban, or rural-adjacent census towns
- Possession of a Certificate of Vending (CoV) / Identity Card issued by the Urban Local Body (ULB)
- OR vendors identified in ULB baseline surveys, OR possessing a valid Letter of Recommendation (LoR) from ULB
- Active Aadhaar card linked with an operative savings bank account and mobile number
Not Eligible:
- Established permanent retail showroom owners or registered corporate wholesalers.
- Persons with willful loan default history or fraudulent commercial documentation.
- Non-vendors seeking consumer personal loans or agricultural farm loans (covered under KCC/MUDRA).
Collateral-Free Credit
Progressive Loan Facility: ₹10,000 -> ₹20,000 -> ₹50,000
Ministry of Housing & Urban Affairs
No guarantor or asset mortgage required. Early repayment attracts zero prepayment charges and unlocks the next loan tranche immediately.
Interest Subvention
7% Interest Subsidy + ₹1,200 Annual Digital Cashback
Quarterly DBT interest subsidy credited directly to bank account on regular repayment, paired with monthly UPI cashbacks.
Required Documentation
Commonly Required Documents
Exact document requirements can depend on the application type and applicant circumstances. View our common documents checklist
Standard
Aadhaar Card with Linked Mobile Number
Mandatory identity proof for e-KYC and digital application on the PM SVANidhi portal.
Standard
Certificate of Vending (CoV) / Vendor ID / Letter of Recommendation (LoR)
Official document issued by the Urban Local Body (ULB) / Municipality certifying vendor status.
Standard
Active Bank Savings Account Passbook / Statement
Bank passbook showing account number and IFSC code for direct loan disbursement and subsidy.
Conditional
UPI QR Code / VPA Details (For Digital Cashback)
Merchant QR code details from BHIM, Google Pay, PhonePe, Paytm, etc. for earning digital cashbacks.
Guidance: Ensure the applicant’s bank account is active and matches the beneficiary name exactly before institutional submission.
Application Process
How to Apply for PM SVANidhi — Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi
Step-by-step application and verification procedure based on official guidelines. Read our official portals guide
1
Check Vending Status & Obtain LoR (If CoV Not Available)
Check your name on the ULB vendor list. If not surveyed, apply online for a Letter of Recommendation (LoR) on pmsvanidhi.mohua.gov.in.
2
Online Application on PM SVANidhi Portal or via Common Service Centre (CSC)
Log into pmsvanidhi.mohua.gov.in with your Aadhaar-linked mobile number, fill in business details, and select your preferred lending bank.
3
E-KYC Verification & Upload of Required Documents
Complete Aadhaar OTP authentication, enter bank account details, and upload CoV/ID/LoR proof.
4
Bank Processing, Sanction & Direct Account Disbursement
The selected bank verifies the application, sanctions the collateral-free loan, and disburses the amount directly into the savings account.
5
Timely EMI Repayment, 7% Subsidy DBT & Digital Cashback
Repay monthly EMIs through bank/UPI to receive 7% interest subsidy DBT, collect monthly QR cashbacks, and qualify for Tier 2 (₹20,000).
Payment Method
Approved loan amounts (₹10,000 in 1st tranche, ₹20,000 in 2nd tranche, ₹50,000 in 3rd tranche) are disbursed directly into the beneficiary’s bank account by participating Commercial Banks, Regional Rural Banks, Small Finance Banks, or MFIs. The 7% interest subsidy and monthly digital cashbacks (up to ₹1,200/yr) are credited directly via Direct Benefit Transfer (DBT).
Formal Scheme Launch Year:Launched on 1 June 2020 (Formalised in 2020 by Ministry of Housing and Urban Affairs)
Important to Know
PM SVANidhi is a collateral-free repayable working-capital BANK LOAN; it is NOT a non-repayable cash grant.
Timely or early repayment unlocks higher loan amounts: ₹10,000 -> ₹20,000 -> ₹50,000 with zero prepayment penalty.
Borrowers who repay regularly receive a 7% per annum interest subsidy credited quarterly via Direct Benefit Transfer.
Vendors without a Certificate of Vending can easily obtain a Letter of Recommendation (LoR) from their Municipality.
Conducting digital customer transactions via UPI QR code earns monthly cashbacks between ₹50 and ₹100 (up to ₹1,200/year).
Frequently Asked Questions
PM SVANidhi — Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi Frequently Asked Questions
Common questions and answers regarding eligibility, benefits, documents, and application process for PM SVANidhi — Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi.
PM SVANidhi (Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi) is a Central Government micro-credit scheme launched in 2020 providing affordable, collateral-free working-capital loans to street vendors.
Sources Checked
All factual information on this page has been compiled and verified against official government portals, gazettes, and departmental guidelines.
Last Verified: 2026-08-19T00:00:00Z
Independent Platform Notice:
WBScheme is an independent information platform and is not the Government of India, Government of West Bengal, or a lending institution. PM SVANidhi loan limits, interest subsidy, digital incentives, eligibility, lender participation and application procedures may change through Government notifications. Loan approval remains subject to applicable scheme and lender rules. Always verify the latest information through the official PM SVANidhi portal.
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