Prime Minister SVANidhi Scheme: Prime Minister SVANidhi is a government initiative launched by the Ministry of Housing and Urban Affairs (MoHUA). This scheme aims to help street vendors by providing easy and affordable working capital loans. The PM SVANidhi Scheme was started to help vendors become financially independent by giving them access to formal loans that can improve their livelihood.
Through this scheme, the street vendors receive a collateral-free working capital loan of INR 10000. If the vendors can repay the loan timely, then they can also apply for a higher loan of INR 20000 – 50000. The scheme offers a 7% subsidy on the interest charged for the loan.
Objective of Prime Minister SVANidhi Scheme
a. Identification of street vendors.
b. Linking vendors with the social protection programme.
c. Support digital usage.
d. Skill Development.
e. Providing UPI-enabled credit card access.
f. Providing financial access by giving vendors working capital loans in 3 steps.
Documents required for PM SVANidhi Scheme
- Letter of Recommendation (LOR) from ULB (Urban Local Body).
- Vendor Certificate (CoV)/ID Card.
- Aadhaar Card
- Voter Card.
- MGNREGA Job Card.
- Driving Licence.
- Pan Card.
Additional Documents required for vendors applying with a LoR
- Scanned copies of the bank passbook or bank statement.
- Request letter to the ULB (Urban Local Body).
- Membership card or any proof of a vendorship association.
Eligibility Criteria: PM SVANidhi Scheme
- Street vendors who have a valid letter of recommendation (LoR), certificate of vending, or any proof of identity issued by the ULB or Town Vending Committee (TVCs).
or - Street vendors working in census towns or peri-urban areas who have an LoR issued by the BDO.
- The vendor’s age should not be less than 18 years, and there is no upper age limit applicable.
PM SVANidhi Scheme Loan Amount & Duration
| Loan Instalment | Loan Amount | Loan Duration |
| 1st | Up to INR 15000/- | 12 months |
| 2nd | Up to INR 25000/- | 18-month |
| 3rd | Up to INR 50000/- | 36 months |
How to apply for the Prime Minister SVANidhi Scheme
- At first, find out which documents and information you must complete the loan application form for the scheme.
- You must collect all the necessary documents before filling out the application form.
- Before filling the form, make sure your mobile number is linked to your Aadhaar because it is required for e-KYC and Aadhaar verification during the online application process.
- If required, linking your mobile with Aadhar can also help you get a letter of recommendation from the ULB.
- This will also help you get benefits from other government schemes in the future.
- Identify your category and keep the required documents and information ready accordingly.
Loan Interest Rate: Prime Minister SVANidhi Scheme
The interest rate is calculated as RLLR + 1.45% + BSS 0.50%. Right now, this comes to 8.30% + 1.45% + 0.50% = 10.25% per year.
PM SVANidhi Scheme Loan Interest Subsidy
| Loan Instalment | Loan Amount | Subsidy |
| 1st | Up to INR 15000/- | INR 603/- |
| 2nd | Up to INR 25000/- | INR 1408/- |
| 3rd | Up to INR 50000/- | INR 5579/- |