PM SVANidhi loan

How to Apply online for PM SVANidhi loan ?

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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 (MoHUA). Its a flagship micro-credit program designed to uplift street vendors across India. This Scheme provides access to affordable loans to revive their livelihoods. In 2025, as announced in the Union Budget by Finance Minister Nirmala Sitharaman, the scheme has been enhanced with increased loan limits, UPI-linked credit cards, and capacity-building support. This article provides a comprehensive guide to the PM SVANidhi Scheme in 2025, covering eligibility, features, benefits, and frequently asked questions.

Eligibility Criteria for PM SVANidhi Scheme

The PM SVANidhi Scheme targets street vendors operating in urban and peri-urban areas. To be eligible in 2025, applicants must meet the following criteria:

  • Vending Status: Must have been engaged in vending on or before March 24, 2020, in urban or peri-urban areas.

  • Identification:

    • Vendors possessing a Certificate of Vending or Identity Card issued by Urban Local Bodies (ULBs).

    • Vendors identified in ULB-led surveys but without a Certificate of Vending can obtain a Provisional Certificate of Vending through the PM SVANidhi IT platform.

    • Vendors without a certificate or survey identification may provide a Letter of Recommendation (LoR) from the ULB or Town Vending Committee (TVC).

  • Geographical Scope: Available in States/Union Territories (UTs) that have notified rules under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014. Vendors from Meghalaya, with its own Street Vendors Act, are also eligible.

  • Business Type: Includes vendors selling goods or services on streets, footpaths, or temporary structures, such as food items, apparel, artisan products, or services like barbershops and laundry.

  • No Default History: Applicants must not have defaulted on loans from formal financial institutions.

  • Other Schemes: Vendors who have availed loans under other government schemes are still eligible.

Note: There is no age limit for applying, making the scheme accessible to a wide range of vendors.

Key Features of PM SVANidhi Scheme

The PM SVANidhi Scheme is designed to provide financial stability and promote digital inclusion among street vendors. Its key features in 2025 include:

  • Loan Amounts:

    • First Tranche: Up to ₹10,000 working capital loan, repayable in 12 monthly installments.

    • Second Tranche: Up to ₹20,000 for vendors who have repaid the first tranche, with an 18-month repayment period.

    • Third Tranche: Up to ₹50,000 for those who have repaid the second tranche, with a 36-month repayment period.

  • Collateral-Free: No security or guarantor is required, as loans are covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

  • Interest Subsidy: A 7% per annum interest subsidy is credited quarterly to beneficiaries’ bank accounts for timely or early repayment, available until December 31, 2025.

  • Interest Rates: Vary by lender:

    • Scheduled Commercial Banks, Small Finance Banks, Regional Rural Banks (RRBs), Cooperative Banks, and SHG Banks: As per prevailing rates (typically 7–12% p.a.).

    • Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs): As per RBI guidelines for NBFC-MFIs, up to 24% p.a.

  • No Prepayment Penalty: Vendors can repay loans early without additional charges.

  • Digital Incentives: Cashback of ₹50–₹100 per month (up to ₹1,200 annually) for vendors using digital payment platforms like UPI, Paytm, GooglePay, PhonePe, or BharatPay.

  • UPI-Linked Credit Cards: New in 2025, vendors can access UPI-linked credit cards with a ₹30,000 limit to facilitate seamless transactions.

  • Capacity Building: Enhanced training and support for financial literacy, digital payments, and business management.

  • No Processing Fees: Applying for the scheme is cost-free, reducing the financial burden on vendors.

  • Loan Purpose: Funds can be used for any business-related purpose, such as purchasing raw materials, paying rent, or acquiring equipment.

  • Implementation: Managed by the Small Industries Development Bank of India (SIDBI), with ULBs providing guarantees and assistance.

Benefits of PM SVANidhi Scheme

The PM SVANidhi Scheme offers significant advantages to street vendors, fostering economic resilience and self-reliance:

  • Economic Revival: Provides affordable credit to help vendors restart businesses disrupted by the COVID-19 pandemic.

  • Financial Inclusion: Reduces dependency on informal moneylenders charging exorbitant interest rates (often 50–100% p.a.).

  • Scalable Financing: Timely repayment unlocks higher loan amounts (₹20,000 and ₹50,000), enabling business expansion.

  • Digital Empowerment: Promotes digital transactions through cashback incentives, increasing financial literacy and integration into the formal economy.

  • Gender Inclusivity: Approximately 44% of beneficiaries are women, empowering female entrepreneurs in urban areas.

  • Social Equity: 44% of beneficiaries are from OBC categories, and 22% from SC/ST categories, ensuring support for marginalized groups.

  • Accessibility: Available nationwide in States/UTs complying with the Street Vendors Act, with over 88.40 lakh loans sanctioned as of April 2023.

  • Holistic Development: Capacity-building programs enhance vendors’ skills in business management and digital tools.

  • Success Metrics: Over 68% of first-tranche borrowers have applied for second-tranche loans, and 75% of second-tranche borrowers have accessed third-tranche loans, indicating effective fund management.

How to Apply for PM SVANidhi Scheme in 2025

Vendors can apply for the PM SVANidhi Scheme online or offline through the following steps:

Online Application

  1. Visit the Official Portal: Go to pmsvanidhi.mohua.gov.in.

  2. Select Loan Amount: Click on “Apply for Loan” (e.g., “Apply Loan 10K,” “Apply Loan 20K,” or “Apply Loan 50K”).

  3. Register: Enter your mobile number (linked to Aadhaar) and captcha code, then request an OTP.

  4. Verify OTP: Enter the OTP sent to your mobile for verification.

  5. Fill Application Form: Provide personal, business, and Aadhaar details.

  6. Upload Documents: Submit:

    • Certificate of Vending or Identity Card issued by ULB, or Provisional Certificate/LoR from ULB/TVC.

    • Aadhaar card (mandatory, linked to mobile number).

    • Other ID proofs (e.g., voter ID, driving license, MGNREGA card).

    • Recent photograph.

    • Bank account details.

  7. Choose Lender: Select a bank, NBFC, or MFI from the list.

  8. Submit Application: Review and submit the form. Keep a printout for reference.

  9. Track Status: Check application status on the portal using your registered mobile number and application number.

Offline Application

  1. Contact ULB or Banking Correspondent: Approach a ULB, Banking Correspondent (BC), or MFI agent for assistance.

  2. Obtain Application Form: Download the Loan Application Form (LAF) from the PM SVANidhi portal or collect it from a bank/MFI.

  3. Submit Documents: Provide the required KYC and vending documents to the ULB or lender.

  4. Verification and Disbursement: The lender verifies documents, and upon approval, the loan is credited to the vendor’s bank account.

Helpline: For queries, contact the toll-free number 1800 11 1979 (9:30 AM–6:00 PM, Monday–Saturday, except national holidays) or email support-pmsvanidhi@mohua.gov.in.

Frequently Asked Questions (FAQs)

1. What is the PM SVANidhi Scheme?
The PM SVANidhi Scheme is a micro-credit initiative launched by the Ministry of Housing and Urban Affairs on June 1, 2020, to provide collateral-free working capital loans to street vendors affected by the COVID-19 pandemic, promoting financial inclusion and self-reliance.

2. Who is eligible for the PM SVANidhi Scheme?
Street vendors operating in urban/peri-urban areas on or before March 24, 2020, with a Certificate of Vending, Provisional Certificate, or LoR from ULBs/TVC are eligible. The scheme is available in States/UTs complying with the Street Vendors Act, 2014.

3. What is the maximum loan amount under the scheme?
The maximum loan amounts are ₹10,000 (first tranche), ₹20,000 (second tranche), and ₹50,000 (third tranche), with a new UPI-linked credit card option offering a ₹30,000 limit in 2025.

4. Is collateral required for PM SVANidhi loans?
No, the loans are collateral-free, covered under the CGTMSE.

5. What are the interest rates for PM SVANidhi loans?
Interest rates vary by lender: 7–12% p.a. for banks and 24% p.a. for NBFCs/MFIs. A 7% interest subsidy is provided for timely repayment until December 31, 2025.

6. What is the repayment period for PM SVANidhi loans?

  • First tranche (₹10,000): 12 months.

  • Second tranche (₹20,000): 18 months.

  • Third tranche (₹50,000): 36 months.

7. Are there any penalties for early repayment?
No, there is no prepayment penalty for early loan repayment.

8. What documents are required to apply?
Required documents include an Aadhaar card (linked to mobile number), Certificate of Vending or LoR, other ID proofs (voter ID, driving license, MGNREGA card), a recent photograph, and bank account details.

9. Can vendors apply multiple times for the scheme?
No, vendors can apply once per tranche. After repaying the first tranche, they can apply for the second, and after repaying the second, for the third.

10. How does the scheme promote digital transactions?
Vendors receive a cashback of ₹50–₹100 per month (up to ₹1,200 annually) for using digital payment platforms like UPI, Paytm, or GooglePay. In 2025, UPI-linked credit cards with a ₹30,000 limit further encourage digital transactions.

11. Can vendors who availed other government loans apply?
Yes, vendors who have availed loans under other government schemes are eligible to apply.

12. How can I check my application status?
Visit pmsvanidhi.mohua.gov.in, click “Know Your Application Status,” and enter your application number, mobile number, and OTP.

13. What are the new updates in 2025?
The scheme now offers enhanced bank loans, UPI-linked credit cards with a ₹30,000 limit, and capacity-building programs for financial literacy and business management, as announced in the Union Budget 2025.

14. Which institutions disburse PM SVANidhi loans?
Loans are disbursed by Scheduled Commercial Banks (e.g., SBI, Punjab National Bank, Canara Bank), RRBs, Cooperative Banks, Small Finance Banks, NBFCs, and MFIs.

15. Why might a loan application be rejected?
Common reasons include not being a street vendor, incomplete documentation, or a history of loan default with formal institutions.

Website – https://pmsvanidhi.mohua.gov.in/

Also visit : https://postofficefd.com/how-to-apply-for-mudra-loan-in-2025/