The PM SVANidhi Yojana, launched by the Government of India, aims to empower street vendors by providing them with easy access to financial support. This initiative, introduced in June 2020, is helping street vendors recover from the impact of the COVID-19 pandemic and improve their livelihoods. With affordable, collateral-free loans and additional incentives for digital payments, the scheme is reshaping the way street vendors operate in India.
The PM SVANidhi Yojana is a transformative initiative that plays a crucial role in uplifting street vendors in India. By offering financial assistance, digital payment incentives, and a simplified loan process, the scheme helps integrate street vendors into the formal financial system, ensuring they have the necessary resources to thrive. As the scheme continues to expand and evolve, it will undoubtedly continue to empower millions of street vendors, contributing to the broader goal of financial inclusion and economic development in India.
Key Features of the PM SVANidhi Scheme
Collateral-Free Loans and Interest Subsidy
Under the PM SVANidhi Yojana, street vendors can avail of loans up to ₹10,000 in the first cycle. These loans are collateral-free, making them accessible to vendors who do not have significant assets to offer as security. The loan repayment tenure is set at 12 months, ensuring that vendors can manage their repayments without undue pressure.
For those who repay their loans on time, a 7% annual interest subsidy is provided. This subsidy is credited directly to the vendor’s bank account, reducing the financial burden and incentivizing timely payments. Subsequent loan cycles, up to ₹20,000 and ₹50,000, are available based on the vendor’s repayment history .
Digital Payment Incentives
One of the standout features of the PM SVANidhi Yojana is the emphasis on promoting digital payments among street vendors. To encourage the adoption of cashless transactions, vendors are offered cashback incentives. Vendors who make digital transactions can earn up to ₹100 per month, further boosting financial inclusion and easing their access to digital platforms .
Extended Loan Period and Increased Funding
Initially, the scheme was scheduled to end in 2025, but the government has now extended it until 2030 with a total financial allocation of ₹7,332 crore. This extended timeline will benefit around 1.15 crore street vendors. With these additional funds, more vendors can be supported, contributing to their financial independence and growth .
Eligibility for PM SVANidhi
Street vendors looking to avail of the PM SVANidhi benefits must meet certain eligibility criteria. To qualify, the vendor must:
- Be operating in urban areas before March 24, 2020.
- Possess a Certificate of Vending or Identity Card issued by the respective Urban Local Bodies (ULBs).
- Vendors who do not have the necessary documents may submit a Letter of Recommendation from the ULB or Town Vending Committee as an alternative .
Apply for PM SVANidhi
Street vendors can apply for the scheme through several channels:
- Online Portal: Vendors can visit the official PM SVANidhi website (https://pmsvanidhi.mohua.gov.in) to submit their applications online .
- Common Service Centers (CSCs): For those without internet access or digital literacy, assistance is available at local CSCs, where vendors can complete their applications .
The application process requires vendors to provide basic details, including their Aadhaar-linked mobile number, bank account information, and vendor identity documents.
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The Impact of PM SVANidhi
Since its launch, PM SVANidhi has shown promising results. As of July 2025, more than 96 lakh loans worth ₹13,797 crore have been disbursed to over 68 lakh street vendors. This financial support has directly contributed to enhancing the vendors’ businesses, providing them with better tools to serve customers and improve their economic conditions. Additionally, nearly 47 lakh beneficiaries have actively participated in digital transactions, generating substantial cashback rewards .
The scheme’s success in fostering financial inclusion and improving the livelihoods of street vendors has been widely praised. In recognition of its efforts, PM SVANidhi received the Prime Minister’s Award for Excellence in Public Administration (2023) for Innovation .
Future Developments
The PM SVANidhi scheme continues to evolve. Recent updates include:
- Higher Loan Limits: As of August 2025, the loan limits have been revised, allowing vendors to access up to ₹15,000 in the first loan cycle, ₹25,000 in the second, and ₹50,000 in the third cycle .
- Credit Cards for Street Vendors: To further assist vendors in accessing credit, a new type of credit card with a ₹30,000 limit has been introduced .
- Pension Enrollment: The Pension Fund Regulatory and Development Authority (PFRDA) aims to enroll 50 lakh street vendors under the Atal Pension Yojana (APY) based on their strong repayment record. This initiative will provide financial security for vendors post-retirement .
