PM SVANidhi Scheme: Who Qualifies and How the Loans Work

PM SVANidhi gives street vendors collateral-free working-capital loans in three steps: up to ₹15,000, then ₹25,000, then ₹50,000. If you repay on time, the government credits a 7% a year interest subsidy to your account. Lending under the restructured scheme runs to 31 March 2030.

Key facts

What changed in the restructured scheme

The Union Cabinet approved a restructured PM SVANidhi on 27 August 2025, with an outlay of ₹7,332 crore. The first loan went up from ₹10,000 to ₹15,000 and the second from ₹20,000 to ₹25,000. The third stayed at ₹50,000.

The same decision added the RuPay credit card for vendors who repay the second loan. It also extended coverage beyond statutory towns to census towns and peri-urban areas. The portal now confirms that vendors from census towns can apply.

The scheme sits alongside other central schemes on our government schemes page. This page covers only the street-vendor loan.

Who counts as an eligible street vendor

A street vendor is anyone selling goods or offering services on a street, footpath or pavement, from a temporary stall or by moving around. That covers vegetable and fruit sellers, tea and snack stalls, cobblers, barbers, pan shops and laundry services, according to the scheme FAQ published by Union Bank of India.

Your route depends on the papers you hold:

To get an LoR, show one of these: papers of a past loan taken for vending, membership of a vendors’ association such as NASVI, NHF or SEWA, or any other proof that you vend. You can also ask the ULB in writing to check your claim locally. SBI’s product page still lists vending in urban areas on or before 24 March 2020 as a condition, so ask your lender how it applies that date.

Loan tranches and tenure

The minimum amounts above are the ones SBI and Canara Bank publish. You repay in monthly instalments. Once you repay a loan on time or early, you become eligible for the next, larger one.

Banks set the interest rate. SBI charges 9.90% (its EBLR of 8.15% plus 1.75%), effective 1 October 2025. Use the EMI calculator to see your monthly instalment before you sign.

Interest subsidy and digital cashback

The 7% a year subsidy is paid into your bank account every quarter. If you close the loan early, the subsidy due is credited in one go. There is no penalty for prepayment.

The subsidy is paid only when you repay on time. If your instalments are late, you lose it for that period.

Digital cashback rewards UPI and other digital payments you receive or make in the business. The restructured scheme allows up to ₹1,600 on retail and wholesale transactions, per MoHUA’s May 2026 backgrounder. Some bank pages still quote the older ₹1,200 yearly cap, so check the current terms on the PM SVANidhi portal. You need a valid UPI ID linked to your loan account.

Documents banks ask for

• Certificate of Vending, ULB ID card, or LoR from the ULB or TVC
• Aadhaar card, with a mobile number for OTP; eKYC is mandatory
• Savings account passbook or bank details
• A UPI ID linked to that account

Canara Bank says it does not ask for a credit score, a project report or Udyam registration for these loans.

How to apply

1. Open pmsvanidhi.mohua.gov.in and choose the option to apply for a loan.
2. Enter the mobile number linked to your Aadhaar and verify it by OTP.
3. Select your vendor category: certificate holder, surveyed vendor, or LoR holder.
4. Fill in your personal, vending and bank details, and pick a lender.
5. Upload your certificate or LoR and submit.
6. Complete eKYC and sign the loan papers with the lender; the money goes to your account.

If you are not comfortable online, a banking correspondent or microfinance agent can fill the form for you. Your ULB keeps a list of them. You can also apply at a bank branch.

If you repay late or default

Late instalments cost you the interest subsidy for that period. A loan that turns into a non-performing asset (NPA) blocks the next tranche; Canara Bank lists existing NPA accounts as ineligible.

The loans carry a credit guarantee from CGTMSE, but that protects the bank, not you. You still owe the money, and a default shows up in your credit report. That makes later bank loans harder to get. Our guide to building credit from scratch explains how a small loan repaid on time helps your score.

The PM SVANidhi credit card

After you repay the second loan, you can apply for a UPI-linked RuPay credit card with a limit of up to ₹30,000. Union Bank of India says the usable limit starts at ₹10,000 and rises to ₹30,000 with good use. The card is valid for five years and is lifetime free, with no joining or annual fee. The interest-free period is 20 to 50 days, as per the issuing bank.

Frequently asked questions

What is the full form of PM SVANidhi?

Prime Minister Street Vendor’s AtmaNirbhar Nidhi. It is a micro-credit scheme for street vendors run by the Ministry of Housing and Urban Affairs.

PM SVANidhi kya hai?

It is a central scheme that gives street vendors loans of ₹15,000, ₹25,000 and ₹50,000 without collateral. Timely repayment earns a 7% a year interest subsidy.

How much PM SVANidhi loan can I get?

Up to ₹15,000 first, up to ₹25,000 after repaying that, and up to ₹50,000 after repaying the second. The total across all three is ₹90,000.

Is the PM SVANidhi loan interest-free?

No. The bank charges its normal rate, and the government credits a 7% a year subsidy if you pay on time.

Can I get PM SVANidhi without a vending certificate?

Yes. If you are in the ULB survey you can apply; otherwise get a Letter of Recommendation from the ULB or Town Vending Committee first.

Till when can I apply for PM SVANidhi?

The lending period runs until 31 March 2030 under the restructured scheme.

Do I need to pay anyone to get the loan?

No. Banks charge no processing fee on any tranche, according to Canara Bank, so treat any request for an upfront payment as a scam.

Sources

• PM SVANidhi portal — Ministry of Housing and Urban Affairs (checked 16 Sep 2026)
• PM SVANidhi: From Survival to Self-Reliance (30 May 2026) — Press Information Bureau (checked 16 Sep 2026)
• Cabinet approves extension and restructuring of PM SVANidhi till 2030 — DD News (checked 16 Sep 2026)
• PM SVANidhi — State Bank of India (checked 16 Sep 2026)
• PM SVANidhi loans — Canara Bank (checked 16 Sep 2026)
• FAQ for PM SVANidhi scheme — Union Bank of India (checked 16 Sep 2026)
• PM SVANidhi Credit Card — Union Bank of India (checked 16 Sep 2026)