I don't have a Certificate of Vending. Can I apply?

If you don't have a CoV and aren't in the vendor survey, approach your ULB for a Letter of Recommendation (LoR). The ULB should issue LoR to any vendor who has been vending in their area. If the ULB refuses, contact the PM SVANidhi helpline.

What's the effective interest rate after subsidy?

Bank rate is typically 12-14%. Government pays 7% subsidy. Your effective rate = 5-7%. On a ₹10,000 loan for 12 months, you pay approximately ₹500-700 in total interest — very affordable.

Can I use the loan for anything?

The loan is meant for working capital — buying stock, raw materials, or improving your vending setup. It's not for personal expenses. However, banks don't strictly monitor end-use for these small amounts.

Active SchemeUpdated: March 2026

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PM SVANidhi — Street Vendor Loan Scheme

Collateral-free working capital loans for street vendors — ₹10,000 first loan, up to ₹50,000 third loan, with 7% interest subsidy

First Loan

₹10,000

Max (3rd)

₹50,000

Interest Subsidy

Beneficiaries

68+ Lakh

📝Apply Online 📞Helpline

📖What is PM SVANidhi — Street Vendor Loan Scheme?

PM SVANidhi (PM Street Vendor's AtmaNirbhar Nidhi) is a micro-credit scheme launched in June 2020 to provide affordable working capital loans to street vendors — the most marginalized segment of India's urban economy. The scheme recognizes that street vendors (sabzi sellers, chai wallahs, fruit vendors, flower sellers, cobblers, book sellers) need small amounts of credit to restart and grow their businesses.

The loan structure is tiered: First loan = ₹10,000, Second loan = ₹20,000 (after repaying first), Third loan = ₹50,000 (after repaying second). Interest subsidy of 7% per annum is provided by the government. Additionally, vendors who adopt digital payments (UPI/QR code) receive a cashback of up to ₹1,200 per year.

As of 2026, over 68 lakh loans have been sanctioned worth ₹11,000+ crore. The scheme has been extended multiple times and is currently active. Any street vendor with a Certificate of Vending (CoV) or Letter of Recommendation (LoR) from the Urban Local Body can apply through banks, MFIs, or NBFCs.

✅Eligibility

Who can applyStreet vendors who were vending on or before March 24, 2020, in urban areas — with CoV or LoR from ULB

CoV/LoRCertificate of Vending from municipal corporation, OR Letter of Recommendation from Town Vending Committee/ULB

Loan amounts₹10,000 (1st), ₹20,000 (2nd after repaying 1st), ₹50,000 (3rd after repaying 2nd)

Interest subsidy7% per annum — government pays this directly, you pay the remaining bank rate

CollateralNone — no guarantor needed

📝How to Apply

Get CoV or LoR from your municipal body

Visit your municipal corporation/ULB office. If you're listed in the vendor survey, you get a Certificate of Vending. If not in the survey, get a Letter of Recommendation from the Town Vending Committee.

Apply at pmsvanidhi.mohua.gov.in or nearest bank

Apply online with Aadhaar, CoV/LoR, bank account details, and mobile number. OR visit any lending bank/MFI branch with documents.

Loan disbursed within 7-10 days

After verification, ₹10,000 is credited to your bank account. Repay in 12 monthly installments.

Repay on time and get larger next loan

After repaying ₹10,000, apply for ₹20,000 (2nd loan). After that, ₹50,000 (3rd loan). Each level helps you grow your business.

⚠️PM SVANidhi is specifically for street vendors. If any agent charges money for 'arranging' the loan, it's a scam. Apply directly at pmsvanidhi.mohua.gov.in or at any lending bank branch. Helpline: 1800-11-1979

📅Important Dates & Schedule

ApplicationOpen throughout the year

Repayment12 monthly installments per loan

❓Frequently Asked Questions

🔗Related Schemes

PM SVANidhi Portal

pmsvanidhi.mohua.gov.in

Visit →