Pm Svanidhi Loan: A Complete Guide for Small Businesses


In the wake of the COVID-19 pandemic, small businesses around the world have been hit hard financially. As a result, many governments have introduced initiatives to provide support and relief to these businesses. In India, one such initiative is the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme, which aims to provide affordable loans to street vendors to help them get back on their feet. In this comprehensive guide, we will delve into the details of the PM SVANidhi loan, eligibility criteria, application process, and much more.

What is PM SVANidhi Loan?

The PM SVANidhi Scheme was launched by the Government of India on June 1, 2020, with the objective of providing working capital loans to street vendors to resume their livelihoods that have been impacted by the COVID-19 pandemic. The scheme targets street vendors, hawkers, small shopkeepers, and other such micro-enterprises, with a special focus on empowering the urban poor.

Eligibility Criteria

To be eligible for the PM SVANidhi loan, applicants must fulfill the following criteria:

  1. The applicant must be a street vendor as defined under the PM SVANidhi scheme.
  2. The vendor should possess a Certificate of Vending.
  3. The applicant should be in the age group of 18-55 years.
  4. The annual turnover of the vendor should not exceed Rs. 10 lakhs.
  5. The vendor should possess an Aadhar card.
  6. The vendor should have a saving bank account.
  7. The vendor should not be a defaulter to any bank.
  8. The vendor should not be a beneficiary of any other government scheme.

Benefits of PM SVANidhi Loan

The PM SVANidhi loan offers several benefits to street vendors, including:

  1. Affordable interest rates.
  2. Flexible repayment options.
  3. Working capital support to resume business operations.
  4. Digital transactions enable vendors to access formal financial services.
  5. Enhanced credit score for future financial transactions.

How to Apply for PM SVANidhi Loan

The application process for the PM SVANidhi loan is simple and can be done both online and offline. Here’s how you can apply:

Online Application Process:

  1. Visit the official website of the PM SVANidhi portal.
  2. Click on the “Apply for Loan” option.
  3. Fill in the online application form with all the required details.
  4. Upload the necessary documents such as Aadhar card, Certificate of Vending, etc.
  5. Submit the application form online.

Offline Application Process:

  1. Visit the nearest Common Service Centre (CSC) or State Channelizing Agencies (SCAs).
  2. Collect the application form and fill in the required details.
  3. Attach the necessary documents along with the application form.
  4. Submit the application form at the designated office.

Documents Required for PM SVANidhi Loan

When applying for the PM SVANidhi loan, the following documents are mandatory:

  1. Aadhar card.
  2. Certificate of Vending.
  3. Savings bank account details.
  4. Passport-sized photographs.
  5. Business proof.

Interest Rate and Repayment

The PM SVANidhi loan offers an interest rate of 7% per annum. The loan amount can be repaid in monthly installments within the stipulated time period. The maximum repayment tenure for the PM SVANidhi loan is 1 year.

Key Features of PM SVANidhi Loan

The PM SVANidhi loan comes with several key features that make it an attractive option for street vendors:

  1. No collateral security required.
  2. Hassle-free application process.
  3. Quick disbursal of loans.
  4. Digital platform for convenience.
  5. Affordable interest rates.

Comparison with Other Government Schemes

While the PM SVANidhi loan is specifically aimed at street vendors, there are other government schemes that cater to the financial needs of small businesses. Some of the popular schemes include:

  1. MUDRA Loan Scheme.
  2. Pradhan Mantri Mudra Yojana (PMMY).
  3. Stand-Up India Scheme.
  4. Pradhan Mantri Rozgar Yojana (PMRY).

FAQs (Frequently Asked Questions)

  1. Is there any processing fee for the PM SVANidhi loan?
  2. No, there is no processing fee for the PM SVANidhi loan.

  3. Can a street vendor avail of the PM SVANidhi loan multiple times?

  4. No, a street vendor can avail of the PM SVANidhi loan only once.

  5. What is the maximum loan amount offered under the PM SVANidhi scheme?

  6. The maximum loan amount offered is Rs. 10,000.

  7. Is there a subsidy provided on the interest rate for the PM SVANidhi loan?

  8. Yes, a subsidy of 7% is provided on the interest rate.

  9. Can a street vendor apply for the PM SVANidhi loan if they do not have a Certificate of Vending?

  10. No, a Certificate of Vending is mandatory to apply for the PM SVANidhi loan.


The PM SVANidhi loan scheme is a ray of hope for street vendors looking to rebuild their businesses post the COVID-19 crisis. With its affordable interest rates, hassle-free application process, and quick disbursal of loans, the scheme is set to empower thousands of street vendors across the country. Small steps like these play a crucial role in uplifting the economy and creating a sustainable livelihood for the urban poor.


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