PM Svanidhi Scheme For Street Vendors – Benefits, Loan Amount, Tenure Explained

PM Svanidhi Scheme For Street Vendors – Benefits, Loan Amount, Tenure Explained

The COVID-19 pandemic that started in the year 2020 hit the economy and the livelihood of individuals very hard. With the pandemic-enforced lockdowns, street vendors were among the most severely affected. On June 1, 2020, the Indian government responded to the plight of the struggling street vendors by launching a special scheme dedicated to them – the PM SVANidhi scheme. Want to know more about it? Continue reading to find out.

What Is the PM SVANidhi Scheme?

The PM SVANidhi scheme is aimed at providing micro credit facilities through working capital loans to street vendors. Under this scheme, eligible individuals may choose to apply online for street vendors loan without the need to put up any collateral. The PM SVANidhi scheme is likely to benefit around 50 lakh street vendors and would provide them with a way to restart their vending business.

Eligibility Criteria for the PM SVANidhi Scheme

To be able to avail loans under this scheme, individuals would have to satisfy the following eligibility criteria.

  • Be engaged in the street vending business in urban areas on or before March 24, 2020.
  • Possess a certificate of vending or identity card issued by Urban Local Bodies (ULBs).
  • Street vendors identified in the survey and possessing a provisional certificate of vending.
  • Street vendors not identified in the ULB survey, but possessing a Letter of Recommendation (LoR) issued by ULB or Town Vending Committee (TVC).
  • Street vendors located in the peri-urban and rural areas but within the geographical limits of ULBs and possessing LoR from ULB or TVC.

Benefits Under the PM SVANidhi Scheme

Now that you’re aware of the eligibility criteria, let’s take a quick look at a few of the benefits that street vendors are likely to enjoy under this scheme and street vendors loan apply online

1. Collateral-Free Loan Amount

Under this scheme, eligible street vendors can avail a loan amount of Rs. 10,000 for getting their business back on track. The loan is completely unsecured, which means that the street vendors won’t have to put up any collateral whatsoever.

2. Relaxed Repayment Tenure

The loan amount of Rs. 10,000 can be slowly repaid over a tenure of 1 year in equated monthly instalments. Such a long and relaxed tenure allows street vendors to make repayments without adding to their burden.

3. Interest Subsidy on Regular Repayment

Street vendors who make timely or early repayment of their EMIs get to enjoy an interest subsidy of 7% per annum. This interest subsidy amount is directly credited to their accounts via Direct Benefit Transfer (DBT).

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4. No Penalties for Early Repayment

If street vendors were to repay their loan well ahead of their tenure, no penalties or foreclosure charges will be levied.

5. Cashback Incentive for Digital Transactions

Street vendors who prioritize and use digital transactions for conducting their businesses will be eligible for a cashback incentive of Rs. 100 per month for the entire tenure of 1 year.


The PM SVANidhi scheme is an exceptional micro credit facility for street vendors. Street vendors who opt for this facility will also be eligible for the next tranche of loans to be provided by the government of India as well.