PM SVANidhi Loan for Street Vendors: Eligibility & Apply (2026)
Reviewed by: WeCredit Research Team
Last updated: September 21, 2026
PM SVANidhi (Prime Minister Street Vendor’s AtmaNirbhar Nidhi) is a MoHUA micro-credit scheme that gives street vendors collateral-free working capital in progressive loan tranches, with interest subsidy and digital incentives when repayment stays regular.
Quick answer: Under the restructured scheme, loans are typically up to Rs. 15,000 (12 months), then Rs. 25,000 (18 months), then Rs. 50,000 (36 months). Lending has been extended till 31 March 2030. Apply on the official portal pmsvanidhi.mohua.gov.in with CoV/ID card or a digitally issued Letter of Recommendation (LoR).
What is PM SVANidhi?
PM SVANidhi is a Central Sector Scheme of the Ministry of Housing and Urban Affairs. It helps urban street vendors access small working capital loans through banks and other lending institutions, without collateral.
- Collateral-free working capital term loans in three progressive tranches.
- Interest subsidy of 7% per annum for standard (non-NPA) accounts, credited quarterly, subject to scheme rules.
- Digital transaction incentives and, after timely repayment of the second tranche, a UPI-linked RuPay credit card route under the restructured design.
- Coverage is expanding beyond statutory towns to census towns and peri-urban areas in a graded manner.
Loan Amounts and Tenure (Restructured Scheme)
| Tranche | Loan amount | Repayment tenure | Key check |
|---|---|---|---|
| 1st tranche | Up to Rs. 15,000 | 12 months | First working capital support |
| 2nd tranche | Up to Rs. 25,000 | 18 months | After full repayment of 1st tranche |
| 3rd tranche | Up to Rs. 50,000 | 36 months | After full repayment of 2nd tranche |
Each next tranche is generally available only after the previous loan is fully repaid. Pre-payment is usually allowed without penalty, but confirm with your lender. Minimum ticket sizes can apply within each tranche, so check the portal or bank product note before applying.
Interest Subsidy and Digital Benefits
- Interest subsidy: 7% per annum, credited to the borrower’s account quarterly if the account remains standard for the relevant months.
- Not a free loan: The lender still charges interest. Subsidy reduces effective cost when repayment stays regular.
- Digital incentives: Cashback-style incentives for prescribed digital transactions may apply. Exact caps can change, so verify on the official portal.
- RuPay credit card: Beneficiaries who timely repay the second loan may become eligible for a UPI-linked RuPay credit card under the restructured scheme design.
Who is Eligible?
- Street vendors engaged in vending in urban / covered areas, including those identified through ULBs / Town Vending Committees.
- Vendors with a valid Certificate of Vending (CoV) or ID card issued by the ULB/TVC can usually apply for the loan directly on the portal.
- Vendors without CoV/ID/LoR can submit an LoR-cum-loan application on the portal for ULB/Block verification and digital LoR issuance.
- A unique UPI ID linked to the vendor’s bank account is generally mandatory.
Lending under the extended phase is approved till 31 March 2030. Interest subsidy and related liabilities continue beyond that under the scheme’s servicing timeline. Always confirm the latest cut-offs on the official portal.
Documents Usually Needed
- Aadhaar and mobile number for OTP / e-KYC
- Certificate of Vending, ULB/TVC ID card, or digitally issued LoR
- Bank passbook / statement and UPI ID linked to the same account
- Passport-size photograph
- Any additional KYC asked by the selected lending institution
How to Apply Online
- Open https://pmsvanidhi.mohua.gov.in/ or use the PM SVANidhi mobile app.
- If you have CoV/ID/digital LoR, apply for the loan and choose a lending institution.
- If you do not have CoV/ID/LoR, submit the LoR-cum-loan application via the portal, ULB/Block office or authorised CSC.
- Complete vendor, bank and UPI details carefully. Upload clear document copies.
- Track status with the application number. Manually issued LoRs are not treated as valid under current portal rules.
Useful Related Guides
- Mudra Loan Eligibility and Documents
- How to Apply for MSME and SME Loan Schemes Online
- Government Loan Schemes for Persons with Disabilities
- Types of Business Loans
Official Sources
- PM SVANidhi official portal
- Ministry of Housing and Urban Affairs
- Cabinet note on restructuring and extension till 31 March 2030
Conclusion
PM SVANidhi is built for street vendors who need small, collateral-free working capital and can repay on time to unlock higher tranches and incentives. Use the official portal, keep CoV/LoR and UPI details ready, and confirm current subsidy and incentive rules before you accept the sanction.
Frequently Asked Questions
What is the maximum PM SVANidhi loan in 2026?
Under the restructured scheme, the third tranche can go up to Rs. 50,000 after earlier tranches are fully repaid. First and second tranches are generally up to Rs. 15,000 and Rs. 25,000.
Till when can vendors apply under the extended scheme?
The Cabinet-approved lending period extends till 31 March 2030. Confirm current portal availability and lender participation before applying.
Do I need a Certificate of Vending to apply?
CoV or ULB/TVC ID helps you apply for the loan directly. If you do not have it, you can seek a digitally issued LoR through the LoR-cum-loan application on the portal.
