The Indian government continues to support small entrepreneurs and informal workers through various schemes. One such impactful initiative is PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi). This scheme was launched in June 2020 with the aim of providing financial assistance to street vendors who were affected during the COVID-19 pandemic. Recently, the government has expanded the loan limit under this scheme up to ₹50,000, that too without any collateral. This move is seen as a major boost for street vendors and micro-business owners.
What is PM SVANidhi?
PM SVANidhi is a central government scheme under the Ministry of Housing and Urban Affairs. It aims to provide working capital loans to street vendors in urban and peri-urban areas. Initially, the scheme offered a loan of ₹10,000, later revised to ₹20,000, and now, based on performance and timely repayment, vendors can avail up to ₹50,000.
The scheme has no requirement for guarantee or collateral, making it extremely accessible to the poor and marginalized vendors.
Objectives of the Scheme
- Provide micro-credit to street vendors.
- Encourage regular repayments through interest subsidy.
- Digitally empower vendors by promoting cashless transactions.
- Help vendors become Atmanirbhar (self-reliant).
Overview Table – PM SVANidhi Scheme
| Feature | Details |
| Scheme Name | PM SVANidhi (PM Street Vendor’s AtmaNirbhar Nidhi) |
| Launched By | Ministry of Housing and Urban Affairs (MoHUA) |
| Loan Amount | ₹10,000 → ₹20,000 → ₹50,000 |
| Interest Subsidy | 7% per annum |
| Collateral Requirement | No Guarantee Required |
| Tenure | Up to 1 year (renewable) |
| Repayment Benefits | Cashback & Interest Subsidy on Timely Payment |
| Target Beneficiaries | Urban Street Vendors |
| Loan Type | Working Capital Loan |
Key Features of PM SVANidhi Scheme
1. Loan up to ₹50,000
The recent expansion allows eligible vendors to take a third term loan of ₹50,000. The process starts with a ₹10,000 loan, followed by ₹20,000 for timely repayment, and finally ₹50,000 without any guarantee.
2. No Collateral Required
This is an unsecured loan, meaning street vendors don’t need to mortgage property or present any security. It provides easy access to credit for those who don’t have assets to pledge.
3. Interest Subsidy
Borrowers receive a 7% interest subsidy on timely repayments. The subsidy is directly credited to the borrower’s bank account every quarter.
4. Digital Empowerment
The scheme encourages street vendors to adopt digital payments. Cashback up to ₹1,200 per year is given as an incentive for digital transactions.
5. Simple Application Process
Street vendors can apply via the PM SVANidhi mobile app or through Common Service Centres (CSCs). The process requires minimal documentation like ID proof, vendor certificate, and a bank account.
Who Can Apply?
- Street vendors who were vending in urban areas before March 24, 2020.
- Vendors identified in urban local body surveys.
- Vendors with a letter of recommendation (LOR) from ULBs or Town Vending Committees.
- Vendors who have been vending for at least a year, but may not be officially listed.
How to Apply?
- Visit the official PM SVANidhi portal.
- Register using your mobile number and Aadhar number.
- Fill in the form with personal, bank, and business details.
- Upload relevant documents (Voter ID, Aadhar, LOR, etc.).
- Submit the application.
- Track loan status online or through mobile app.
You can also visit nearby banks or CSCs for offline support.
Government’s Huge Step – Why It Matters?
With the increase in the loan amount and continued subsidy support, the government is making a massive push toward financial inclusion and self-employment generation. Most street vendors operate on a day-to-day basis, and a capital of ₹50,000 allows them to:
- Purchase better stock.
- Expand their business operations.
- Switch to mobile carts or more hygienic setups.
- Invest in digital tools like UPI, QR codes, etc.
This also reduces their dependence on local moneylenders who charge very high interest rates.
Success Stories So Far
More than 60 lakh vendors have already benefited from the scheme since its launch. Many street vendors have expanded their businesses and are now earning 30%–40% more after receiving working capital under SVANidhi. The scheme has become a model for other nations looking to support informal workers.
Conclusion
The PM SVANidhi scheme is more than just a loan program — it is a lifeline for millions of India’s hardworking street vendors. With no collateral, up to ₹50,000 loan, and interest subsidy, this scheme is empowering the backbone of India’s urban informal economy. If you or someone you know is a street vendor, don’t miss this golden opportunity to grow your business with government support.