PM SVANidhi 2026 — Street Vendor Loan ₹10,000 to ₹50,000 Without Collateral: How to Apply

Loan Amounts, Interest Subsidy, and Cashback Incentives

PM SVANidhi has three loan tranches — each larger than the previous, available to vendors who repay on time: 1st loan: ₹10,000, 1-year tenure. 2nd loan: ₹20,000, available after timely repayment of 1st loan, 18-month tenure. 3rd loan: ₹50,000, available after timely repayment of 2nd loan, 36-month tenure. Interest subsidy: 7% per annum interest subsidy is credited quarterly directly to the vendor's Aadhaar-linked bank account by the Ministry of Housing and Urban Affairs. Digital payment incentive: Vendors who use UPI/digital payments receive a cashback of ₹100 per month (for minimum ₹50 digital transactions per month) — up to ₹1,200 per year. Credit Score Building: Timely repayment of SVANidhi loans builds your CIBIL score, enabling access to higher-value business loans subsequently.

Who is Eligible — Vendor Categories Covered

SVANidhi covers all urban and peri-urban street vendors with or without a vending certificate or identity card. Covered activities: Vegetable and fruit vendors, tea/snack vendors, street food stalls, barbers, tailors, laundry workers, cobblers, stationary/book sellers, flower vendors. Key eligibility criteria: (1) The vendor must have been vending as of 24 March 2020 (pre-COVID baseline). (2) Urban/peri-urban area — not applicable for purely rural vendors. (3) The vendor must have a Letter of Recommendation (LoR) from Town Vending Committee (TVC), Urban Local Body (ULB), or their registered vendor association. For vendors without any documentation, a self-certification process is available at many ULB offices — the municipality issues a provisional certificate for SVANidhi application purposes.

How to Apply — Online and Offline Process

Online application: Visit pmsvanidhi.mohua.gov.in and click 'Apply for Loan 10K/20K/50K' depending on your eligibility. Register with your Aadhaar-linked mobile number. Fill the application: personal details, vending activity, ULB/municipality name. Upload: Aadhaar card, vendor certificate or LoR from ULB/TVC, bank account proof. The application is sent to your designated lender (Scheduled Commercial Bank, Microfinance Institution, or Cooperative Bank) in your area. Offline application: Visit your nearest bank branch (SBI, UCO Bank, Punjab & Sind Bank, Jana Small Finance Bank, and most urban cooperative banks are active SVANidhi lenders) and ask for the PM SVANidhi application form. The bank verifies your documents and processes the loan within 7–14 working days. Repayment: Via UPI, BHIM, or bank EMI — vendors who repay via digital modes get the cashback incentive.

Common Problems and How to Solve Them

Problem 1 — 'I don't have a Vendor Certificate': Apply to your local Urban Local Body (ULB/municipality) for a Vending Certificate under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act 2014. Most municipalities issue certificates within 30 days. Alternatively, ask your registered vendor association to provide an LoR. Problem 2 — 'Bank is asking for collateral': SVANidhi loans are explicitly collateral-free — politely show the scheme guidelines. If the bank insists, escalate to the bank's Regional/Zonal Manager or file a complaint at the RBI's Banking Ombudsman portal. Problem 3 — 'Application showing as rejected on portal': Common rejection reason is Aadhaar not seeded to bank account. Visit your bank branch to complete Aadhaar-bank seeding before applying.

Frequently Asked Questions