PM SVANidhi Scheme 2026: Collateral-Free Loans Up to ₹50,000 with 7% Interest Subsidy for Street Vendors

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Introduction to PM SVANidhi Scheme

The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) is a central sector scheme launched in June 2020. The Ministry of Housing and Urban Affairs (MoHUA) introduced it to help street vendors hit hard by the COVID-19 pandemic. Pradhan Mantri Awas Yojana PMAY 2026: Get Up to ₹1.80 Lakh Interest Subsidy on Home Loans

The scheme offers collateral-free working capital loans. It helps vendors restart their businesses and build long-term financial stability. It covers urban and rural vendors, including those in weekly markets, haats, and informal vending spots. Central Sector Interest Subsidy Scheme CSIS 2026: Education Loans Up to ₹10 Lakh

In 2026, PM SVANidhi is still very active. The government has restructured it and extended it until March 31, 2030. The total outlay is now ₹7,332 crore. This will support 1.15 crore vendors, including 50 lakh new ones. Pradhan Mantri Vidyalaxmi Scheme 2026: Free Education Loans with 3% Interest Subvention Up to ₹10 Lakh

Key updates include higher loan tranches based on repayment history. Vendors can now get a PM SVANidhi Credit Card launched in January 2026. This UPI-linked card offers rewards, cashback, and easy digital payments.

The scheme provides a 7% interest subsidy per year for timely repayments. This subsidy is credited directly to the vendor’s account every quarter.

PM SVANidhi has already reached millions of vendors. It promotes financial inclusion and formal banking. Urban Local Bodies (ULBs) help identify vendors and issue QR codes or certificates.

The scheme supports Atmanirbhar Bharat. It encourages digital transactions and vendor self-reliance.

Why Choose PM SVANidhi Scheme?

PM SVANidhi gives quick and cheap credit without any collateral. This is perfect for small vendors who cannot get loans from regular banks.

The 7% interest subsidy makes the effective cost very low – almost zero if you repay on time. In 2026, the new credit card adds more value with rewards and cashback.

Vendors can start small and grow through higher tranches. This builds a good credit history over time.

The scheme fits tea sellers, vegetable vendors, fruit sellers, and artisans. It reduces reliance on expensive moneylenders. It also helps families earn steady income.

Digital applications make the process simple and fast. Anyone with a smartphone can apply.

Benefits of PM SVANidhi Scheme

No need for collateral or guarantor. Clear interest subsidy savings. Better credit score for future loans. Digital tools for easy payments.

Key Advantages Table

AdvantageDescription
Collateral-FreeNo security or guarantor needed.
Interest Subsidy7% per annum on timely repayment.
Loan Tranches₹10,000 → ₹25,000 → ₹50,000.
Digital Credit CardUPI-linked with rewards/cashback.
ExtensionValid till March 2030.

Key Features of PM SVANidhi Scheme

The scheme offers collateral-free working capital loans with built-in incentives.

Loan Tranches and Subsidy

First loan: ₹10,000 for beginners. Second loan: ₹25,000 after timely repayment of the first. Third loan: ₹50,000 after timely repayment of the second.

Interest subsidy: 7% per year on timely payments. This is credited directly to your account every quarter. Loan tenure: 12 months with monthly EMIs.

Effective interest rate: Very low – often close to zero with full subsidy.

PM SVANidhi Credit Card (Launched 2026)

UPI-linked card for vendors. Offers rewards and cashback on transactions. Helps vendors accept digital payments easily.

Loan Tranches Table

TrancheLoan AmountEligibility
First₹10,000Initial application
Second₹25,000Timely repayment of first
Third₹50,000Timely repayment of second

Other Features

Digital verification through ULB certificate or QR code. No prepayment penalty. Subsidy paid directly to your bank account.

Eligibility for PM SVANidhi Scheme

The scheme is open to street vendors in urban and rural areas.

Eligibility Criteria

You must be a street vendor (hawker, seller in markets or haats). You need a vendor certificate from your Urban Local Body (ULB). Age must be 18 years or above. No defaults on previous loans. For higher tranches: Show timely repayment history. Priority given to women, SC/ST, and minorities.

Interest Rates and Charges

Banks set the nominal interest rate, usually 12-18%. The 7% subsidy applies only on timely repayments. This makes the effective rate much lower.

Interest Rate Table

AspectDetails
Nominal Rate12-18% (bank varies)
Subsidy7% p.a. on timely EMI
Effective~5-11% after subsidy
Tenure12 months

How to Apply for PM SVANidhi Scheme

The process is simple and mostly digital.

Application Process

Get a vendor certificate from your ULB if you do not have one. Download the PM SVANidhi app or visit pmsvanidhi.mohua.gov.in. Register using Aadhaar and mobile number. Fill the application form and upload documents. The ULB verifies your details. The bank sanctions the loan quickly. For the credit card: It links automatically after your first loan.

You can track everything on the app or portal.

Required Documents

The list is short and easy to provide.

Documents Checklist Table

DocumentPurpose
AadhaarID/KYC
Vendor CertificateULB proof
Bank DetailsLoan disbursement
Mobile NumberOTP verification
PhotoApplication

Link with Other Schemes

It connects with the PM SVANidhi Credit Card and UPI. It also works with Mudra loans for larger needs.

Participating Banks

All major scheduled banks, Regional Rural Banks (RRBs), and small finance banks.

Benefits for Street Vendors

Vendors can improve their business fast. They build a good credit history. Digital payments become easier. Income grows with more stock or better equipment.

Challenges and Tips

Sometimes ULB verification takes time. Tip: Get your certificate early. Repay on time to get subsidy and higher loans.

Risk Management

Pay EMIs regularly. Use the credit card carefully to avoid debt.

Costs and Earnings

For a ₹10,000 loan: EMI is about ₹900 per month. Subsidy saves around ₹400-600 yearly. Vendors often see extra earnings from better stock.

Cost Breakdown Table

ItemCost
Interest (nominal)12-18%
Subsidy Save7% p.a.
EMI Example₹900 for ₹10,000

Success Stories

Many vendors started with ₹10,000 and grew to ₹50,000 loans. They bought better carts and increased sales. Digital payments helped them serve more customers.

Future in 2026

The credit card will boost digital adoption. The scheme extends to 2030. More vendors will join with the new structure.

Conclusion

PM SVANidhi empowers street vendors every day. It offers quick loans, subsidies, and digital tools. Apply through the app or portal today.

FAQ Section

What is PM SVANidhi Scheme?

Loan for street vendors.

Loan Amount?

Up to ₹50,000 in tranches.

Interest Subsidy?

7% on timely repayment.

Eligibility?

Street vendors with certificate.

How to Apply?

App or portal.

Collateral?

No.

Tenure?

12 months.

Credit Card?

Launched 2026, UPI-linked.

Extension?

Till March 2030.

Subsidy Credited?

Quarterly.

FAQ Table

QuestionAnswer
Loan Max₹50,000
Subsidy7%
EligibilityVendors
ApplyApp/Portal
CollateralNo
Tenure12 Months
Credit CardYes 2026
Extension2030
CreditedQuarterly
BenefitsEmpowerment

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