PM Svanidhi Yojana: Get Up to ₹80,000 Business Loan Without Collateral—Check Eligibility & How to Apply

Thinking of Starting a Small Business? PM Svanidhi Yojana Offers Microloans in 3 Easy Steps with 7% Interest Subsidy

To support aspiring entrepreneurs and small vendors across India, the government has launched the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Yojana. This micro-credit scheme is specially designed for people who wish to start or expand their small businesses but face financial constraints. Under this initiative, beneficiaries can receive loans up to ₹80,000 in three phases, and the best part—it requires no collateral.

Let’s explore what the PM Svanidhi Yojana offers, who is eligible, and how to apply.

What Is PM Svanidhi Yojana?

The PM Svanidhi Yojana is a government-backed microloan scheme aimed at empowering small vendors and entrepreneurs. It enables eligible applicants to receive business loans in three progressive stages:

• ₹10,000 in the first installment

• ₹20,000 in the second installment

• ₹50,000 in the final installment

The idea is to support the gradual growth of the business. Each subsequent loan installment is provided only after the previous loan has been repaid successfully, helping borrowers build a strong credit history.

Key Features of the Scheme

• No Collateral Needed: The loan is unsecured. You don’t have to pledge any asset to qualify.

• Easy Eligibility: Only an Aadhaar card is required to apply.

• EMI Facility Available: Repay the loan through easy monthly installments.

• One-Year Repayment Tenure: Each loan must be repaid within 12 months.

• Interest Subsidy: A 7% annual interest subsidy is credited directly to the borrower’s bank account, significantly lowering the cost of the loan.

Step-by-Step Loan Disbursement

Here’s how the loan process unfolds:

1. First Loan – ₹10,000:

   • New applicants begin by applying for a ₹10,000 loan.

   • If repaid in full within the time limit, the applicant becomes eligible for the next level.

2. Second Loan – ₹20,000:

   • Granted to borrowers with good repayment records.

   • Designed to help scale the business further.

3. Third Loan – ₹50,000:

   • Final and largest loan installment.

   • Enables the borrower to stabilize and expand operations significantly.

How to Apply for PM Svanidhi Loan

Applying for the PM Svanidhi Yojana is simple and hassle-free:

1. Visit a Nearby Government Bank:

   • Applications can be submitted at any public sector bank or financial institution authorized under the scheme.

2. Document Submission:

   • Submit your Aadhaar card and fill out the loan application form.

   • No other extensive documentation is usually required.

3. Verification Process by Urban Local Bodies (ULB):

   • The ULB verifies your identity and business details.

   • If approved, they issue a recommendation letter to the bank.

4. Bank Review and Disbursal:

   • The bank reviews the application and processes the loan.

   • Once approved, the loan amount is credited directly to your bank account.

Additional Benefits of the Scheme

• Subsidy Support: The government offers an interest subsidy of 7% per annum, which helps reduce the repayment burden.

• Boost for Street Vendors: Especially beneficial for small traders, hawkers, and individuals running kiosks or mobile carts.

• Encouragement for Digital Payments: Borrowers who adopt digital transactions may receive additional benefits or rewards under the scheme.

Final Words

The PM Svanidhi Yojana is a golden opportunity for individuals looking to start or grow their small businesses without financial stress. With no collateral requirement, easy application steps, and government-backed subsidies, it is tailored to uplift street vendors and micro-entrepreneurs across urban India.

If you're planning to become financially independent through a small business, this scheme could be your first step toward success. Apply at your nearest bank today and take control of your economic future.