The Government of India continues its mission to support small businesses and promote self-reliance through the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Yojana. Launched in 2020 and continuing strong into 2025, this scheme is aimed at providing working capital loans to street vendors whose livelihoods were affected by the COVID-19 pandemic. Now, with fresh forms being accepted for the new financial year, it’s the perfect time to understand this scheme in detail and take advantage of its benefits.
What is PM Svanidhi Yojana?
PM Svanidhi stands for Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi. It is a central government scheme that offers collateral-free loans up to ₹50,000 in three phases to help street vendors restart or expand their businesses. The scheme is implemented by the Ministry of Housing and Urban Affairs (MoHUA) and works through banks and municipal bodies.
Initially, vendors are provided with a loan of ₹10,000. On timely repayment, they become eligible for a second loan of ₹20,000, and subsequently a third loan of ₹50,000.
Who Can Apply for the PM Svanidhi Yojana?
The scheme is specially designed for:
- Street vendors who were vending on or before March 24, 2020
- Vendors identified in urban local bodies (ULBs)
- Those holding a Vendor ID Card or certificate from the town municipal corporation
- Vendors in peri-urban and rural areas may also be considered on a case-by-case basis
Key Features of the PM Svanidhi Scheme 2025
- Collateral-Free Loans: No security or guarantor is required to avail the loan.
- Initial Loan Amount: ₹10,000 (1st tranche), with scope to increase based on repayment.
- No Processing Fee: There are no hidden charges or fees.
- Interest Subsidy: A 7% interest subsidy is provided by the government and credited quarterly to the borrower’s bank account.
- Digital Transactions Benefits: Vendors are encouraged to adopt digital payments and earn cashback up to ₹1,200 annually.
- Flexible Repayment: Monthly EMIs with tenure of 12 months or more.
- Opportunity for Higher Credit: Vendors with a good repayment record can access higher loans in subsequent phases.
How to Apply for the PM Svanidhi Loan?
Eligible vendors can apply through the following process:
1. Visit the Official Portal or Nearest CSC:
Vendors can apply online through the PM Svanidhi portal or visit a Common Service Centre (CSC), bank branch, or municipal office.
2. Fill the Application Form:
The form asks for personal details, Aadhaar number, business type, location, and bank account details.
3. Submit Documents:
Required documents include:
- Aadhaar Card
- Voter ID / Driving License
- Street Vendor Certificate or ID from ULB
- Bank passbook with account details
- Passport-size photo
- Mobile number
4. Verification by ULB or Bank:
Once submitted, the application is verified by the concerned authorities.
5. Loan Disbursement:
Upon approval, the amount is credited directly to the applicant’s bank account.
Documents Required for PM Svanidhi Application
- Aadhaar card (linked with mobile and bank account)
- Proof of vending (such as vendor certificate or letter from ULB)
- Bank account passbook
- Passport-size photograph
- Mobile number (for OTP verification)
Why Should Street Vendors Apply Now?
With the application window for 2025 now open, vendors who missed out in previous years or want to apply for higher loan tranches should act immediately. The government has simplified the process, and many banks have set up dedicated help desks to assist applicants.
This loan is not just financial support but a recognition of the contribution street vendors make to India’s urban economy. From fruit sellers and food cart owners to cobblers and mobile recharge vendors, this scheme supports a wide range of occupations.
Success Stories of PM Svanidhi Beneficiaries
Thousands of vendors across India have already benefited from this scheme. Many used the funds to:
- Restock goods after the pandemic
- Buy better carts or equipment
- Start digital payment options (like QR codes)
- Grow their daily income and savings
The scheme has helped many vendors re-establish their dignity and regain their source of income with confidence.
Future Prospects and Government Support
The government aims to integrate more digital financial tools and ensure vendors have access to insurance and pension schemes as well. PM Svanidhi is now being linked to other government schemes like PM Suraksha Bima Yojana and PM Jeevan Jyoti Bima Yojana, enhancing social security for the urban poor.
Conclusion
The PM Svanidhi Yojana 2025 is a game-changer for lakhs of street vendors who form the backbone of India’s informal economy. With minimal documentation, no collateral, and attractive repayment benefits, this scheme is a golden opportunity for vendors to scale their businesses and lead better lives.
If you or someone you know is eligible, don’t delay—start the application today and take a strong step toward financial empowerment and self-reliance.
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