PM SVANidhi Scheme 2025: How Street Vendors Can Get Up to ₹50,000 Collateral-Free Loan – Full Details Inside

The Government of India is giving a major financial boost to street vendors through the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme. Launched on June 1, 2020 by the Ministry of Housing and Urban Affairs (MoHUA), the scheme provides collateral-free loans ranging from ₹10,000 to ₹50,000 to help street vendors restart or expand their businesses. With its 2025 update, the initiative continues to empower small entrepreneurs who form the backbone of India’s urban economy.

Purpose of the PM SVANidhi Scheme

The primary goal of the scheme is to bring street vendors into the formal financial sector and make them self-reliant. By offering easy credit and encouraging digital transactions, the government aims to provide a stable income source to vendors who sell fruits, vegetables, tea, ready-to-eat food, clothes, shoes, books, and other products. It also covers service providers such as barbers, washermen, cobblers, and weavers. To promote digital payments, beneficiaries can also earn cashback incentives of up to ₹100 per month for using digital modes of payment.

Loan Amounts and Key Benefits

The PM SVANidhi Scheme allows street vendors to access credit in three phases, depending on their repayment history:

• First loan: Up to ₹10,000

• Second loan: Up to ₹20,000

• Third loan: Up to ₹50,000

The loans are offered at an affordable 7% annual interest rate with no collateral requirement. There is no processing fee, and vendors can use the funds for essential business expenses such as purchasing raw materials, paying rent, or upgrading equipment. Each loan comes with a one-year repayment period, ensuring flexibility for borrowers to repay without pressure. Timely repayment improves credit scores and eligibility for higher loan amounts in the next phase.

Eligibility Criteria

Street vendors in both urban and peri-urban areas can apply if they meet any of the following conditions:

• Vendors with a Certificate of Vending (CoV) or valid identity card.

• Vendors identified in the municipal survey but awaiting their CoV or ID.

• New vendors who started operations after the survey but have received a Letter of Recommendation (LoR) from the Urban Local Body.

• Vendors from adjoining rural or peri-urban areas who possess a LoR.

Step-by-Step Application Process

Applying for the PM SVANidhi Scheme is simple and fully online. Here’s how to register:

1. Visit the official portal: pmsvanidhi.mohua.gov.in.

2. Click on Log In and enter your mobile number and captcha code.

3. Request an OTP to verify your mobile number.

4. After logging in, select your vendor category and enter your Survey Reference Number (SRN).

5. Fill out the online application form with accurate personal and business details.

6. Upload the required documents and submit the form.

7. Download and print the confirmation page for future reference.

For assistance, vendors can call the toll-free helpline 1800-111-979 (Monday to Saturday, 9:30 AM to 6:00 PM).

Documents Required

Applicants need to submit different documents depending on their category and loan stage:

For the first loan:

• Category A & B: Certificate of Vending or Vendor ID card

• Category C & D: Letter of Recommendation from the Urban Local Body

• KYC documents such as Aadhaar card, voter ID, driving license, PAN card, or MGNREGA card

For the second or third loan:

• Closure document of the previous loan

• Proof of timely repayment

A Lifeline for India’s Street Vendors

The PM SVANidhi Scheme is more than just a credit program—it is a pathway to financial inclusion and self-employment. By giving vendors access to low-interest, collateral-free loans, the scheme helps them invest in their businesses, increase earnings, and improve their standard of living. With the 2025 update, thousands of street vendors can look forward to a more secure and empowered future.