PM SVANidhi
PM Street Vendor's AtmaNirbhar Nidhi
PM SVANidhi was launched on 1 June 2020 as a COVID-19 relief measure for India's 50+ lakh urban street vendors who were the most economically devastated by the lockdown. It has since grown into a permanent working capital programme for street vendors across all cities and towns.
**The Three-Tier Loan Structure:**
SVANidhi creates a credit escalation ladder for street vendors:
- **1st Loan: ₹10,000** — collateral-free, 1-year repayment, market interest rate with 7% subvention
- **2nd Loan: ₹20,000** — after full repayment of 1st loan, better repayment track = doubled credit
- **3rd Loan: ₹50,000** — after full repayment of 2nd loan, vendor's credit worthiness established
The progressive structure rewards repayment discipline and provides a pathway from ₹10,000 to ₹50,000 — enabling vendors to grow from push-cart to small shop.
**Who is a Street Vendor?**
Any person who earns their livelihood through street vending — vegetables, fruits, flowers, food items (chai, chaat, dosa, biryani), clothing, shoes, accessories, handicrafts. Also includes mobile vendors (pushing carts), stationary vendors (on pavements/markets), and services (cobbler, barber, ear cleaner).
**Vending Certificate / Letter of Recommendation:**
To apply, vendors need either a Vending Certificate (from Town Vending Committee) or a Letter of Recommendation (LoR) from the Urban Local Body (ULB). Many vendors don't have these formally — the scheme allows vendors to apply with an LoR which ULBs can issue quickly.
**Digital Incentive:**
₹100/month cashback for digital transactions (UPI/QR code) for 12 months = ₹1,200/year. This incentivises vendors to accept digital payments — building a transaction history that helps future loan applications.
**SVANidhi Se Samriddhi:**
An add-on programme — enrolled SVANidhi vendors get convergence benefits of 8 central government schemes automatically: PM-KISAN for farmer-vendors, PM-JAY health insurance, PMJJBY life insurance, PMSBY accident insurance, PMJDY account, PM Vishwakarma linkage, and more.
Key Objectives
- Provide working capital to street vendors to resume livelihoods after COVID-19 disruption.
- Formalise street vendor credit through institutional channels — reducing moneylender dependence.
- Create a progressive credit history for vendors enabling access to larger formal credit.
- Promote digital transactions among street vendors through incentives.
Benefits
Eligibility
- Urban street vendors (hawkers, pheriwallas) who vend in cities, towns, or peri-urban areas
- Vendors with a Certificate of Vending (CoV) OR Letter of Recommendation (LoR) from ULB
- Vendors whose vending zones are within municipal limits
- Vendors who were vending on or before 24 March 2020 (lockdown date)
- Must have an Aadhaar-linked bank account
- ULB-issued Vending Certificate or Letter of Recommendation is the key eligibility document
- Both permanent (fixed spot) and mobile vendors are eligible
- Rural hawkers (PM SVANidhi is urban-only — rural hawkers should use PM Mudra Shishu)
- Vendors not within municipal/notified area limits
- Registered shops with permanent structures (they are not street vendors by definition)
How to Apply
Step 1: Visit pmsvanidhi.mohua.gov.in or the nearest Lending Institution (SFBs, cooperative banks, MFIs, SHGs)
Step 2: Alternatively, visit your ULB (municipality) office for vendor registration and Letter of Recommendation (LoR)
Step 3: Apply online with Aadhaar, mobile number, and vending details
Step 4: Lenders verify the LoR/CoV and Aadhaar
Step 5: ₹10,000 loan disbursed to Aadhaar-linked bank account
Step 6: Repay in equal weekly/monthly instalments over 1 year
Step 7: On full repayment, automatically eligible for ₹20,000 2nd loan
Step 8: Activate UPI/QR code for digital transactions — ₹100/month cashback starts
Required Documents
Frequently Asked Questions
I am a vegetable seller. Am I eligible for PM SVANidhi?
Yes — vegetable sellers are specifically mentioned as eligible street vendors under PM SVANidhi. You are eligible whether you sell from a push cart, a fixed spot, or move around on foot. Visit pmsvanidhi.mohua.gov.in to apply or go to your nearest municipality office to get a Letter of Recommendation (LoR) first.
How do I get a Letter of Recommendation (LoR) from my ULB?
Visit your ward office or municipal corporation office with your Aadhaar, a photograph, and a description of your vending location and goods. Request a SVANidhi Letter of Recommendation. Many municipalities also have Town Vending Committees (TVCs) that issue Certificates of Vending (CoV). The LoR is free — no fee should be charged. With the LoR, you can apply for the SVANidhi loan at any empanelled lender.
After taking the ₹10,000 PM SVANidhi loan, when can I get the ₹20,000 second loan?
You can apply for the ₹20,000 2nd loan after full repayment of the ₹10,000 1st loan — there is no waiting period after repayment. The same lender processes the 2nd loan automatically for borrowers with clean repayment. Timely repayment is the only condition. The 3rd loan of ₹50,000 follows the same logic after repayment of the 2nd.
How does the ₹100/month digital cashback work for SVANidhi?
After loan disbursement, you must do digital transactions (UPI, card) with customers. The incentive is ₹100/month for each month where you reach the minimum transaction threshold (25 digital transactions/month). This cashback is credited to your SVANidhi account/bank account. Over 12 months, you can earn ₹1,200 — essentially reducing your net interest cost to near zero on ₹10,000.
PM SVANidhi says 'urban' street vendors. What if I vend in a peri-urban area or outskirts?
PM SVANidhi covers areas within Urban Local Body (ULB) limits — including municipalities, municipal corporations, town panchayats, and notified area committees. Peri-urban areas that are within ULB jurisdiction are covered. If your vending area is outside any ULB limit (purely rural), you are not eligible for SVANidhi — use PM Mudra Shishu loan (up to ₹50,000) instead.