PM SVANidhi Scheme: How Street Vendors Can Access Collateral-Free Loans Up To Rs 50,000

The Pradhan Mantri Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) scheme was inaugurated by India's central government on June 1, 2020. This initiative was designed to provide essential financial assistance to street vendors and small entrepreneurs throughout India, fostering self-employment and economic independence. The government has implemented various programs to ensure timely financial aid reaches those looking to establish or grow their small businesses.

The PM SVANidhi scheme offers several beneficial features. Qualified vendors can access working capital loans ranging from Rs 15,000 to Rs 50,000 without collateral requirements. Those who make regular repayments will receive a 7% annual interest subsidy and can earn up to Rs 1,600 in cashback for digital transactions. Furthermore, there are no penalties for early loan repayment.

To qualify for the scheme, vendors must have a Certificate of Vending or an Identity Card issued by their local Municipal Body (ULB). Vendors identified in surveys but lacking certification can receive a Provisional Certificate through the dedicated IT platform. The program also accommodates vendors who were missed in ULB surveys or began operations after survey completion through Letters of Recommendation (LoR) from the ULB or Town Vending Committee. Vendors operating in rural or semi-urban areas bordering city boundaries can also participate with appropriate LoR documentation.

The application process is straightforward. Vendors may submit applications directly via the PM SVANidhi portal or visit their nearest Common Service Center (CSC). Loans are processed and disbursed through multiple financial institutions including Scheduled Commercial Banks, Regional Rural Banks, Small Finance Banks, Cooperative Banks, NBFCs, Microfinance Institutions, and Self-Help Group Banks.

For application submission, vendors need to provide basic KYC documentation such as an Aadhaar card and voter ID. Alternative identification like driving licenses, MNREGA cards, or PAN cards are also accepted as valid documentation.