PM SVANidhi Loan Yojana 50000
Street vendors and small business owners now have a golden opportunity to secure financial aid through the PM SVANidhi Loan Yojana. Launched by the Government of India, this scheme provides hassle-free, collateral-free loans of up to ₹50,000 to help vendors sustain and grow their businesses. If you're looking to apply, read on to understand everything about the PM SVANidhi Loan Scheme and how you can apply.
What is PM SVANidhi Loan Scheme?
The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme is an initiative by the Ministry of Housing and Urban Affairs (MoHUA) to provide working capital loans to street vendors. The scheme was launched in June 2020 as part of the Atma Nirbhar Bharat initiative to support vendors affected by the COVID-19 pandemic.
Under this scheme, eligible street vendors can avail loans in three stages:
- First loan: Up to ₹10,000
- Second loan: Up to ₹20,000 (on timely repayment of the first loan)
- Third loan: Up to ₹50,000 (on successful repayment of the second loan)
The loan is collateral-free, and vendors can apply online for quick disbursal.
Who can apply for PM SVANidhi Scheme?
The PM SVANidhi yojana (also known as Street Vendor Loan Scheme) is designed specifically for street vendors across India. It is meant for those who were vending in urban areas on or before March 24, 2020. The beneficiaries include street vendors selling fruits, vegetables, snacks, tea stalls, kiosks, street-side eateries, small business owners dealing in clothes, footwear, household items, and service providers such as barbers, cobblers, and pan vendors.
What Are the Benefits of PM SVANidhi Scheme?
- Collateral-Free Loan: No need to provide any security or guarantor.
- Affordable Interest Rates: Interest subsidy of 7% per annum is provided.
- Incentives for Timely Repayment: Eligibility for a higher loan amount after repayment.
- Digital Transaction Benefits: Cashback of up to ₹100 per month for vendors using digital transactions.
- Quick and Easy Application Process: Apply online and get loan disbursal within days.
Eligibility Criteria for PM SVANidhi Loan
To apply for the PM SVANidhi loan, the applicant must meet the following eligibility conditions:
- Must be an active street vendor in urban or semi-urban areas.
- Must possess a Certificate of Vending or Identity Card issued by Urban Local Bodies (ULB).
- If not registered, must have a recommendation letter from ULB or Town Vending Committee.
- Must have been vending on or before March 24, 2020.
Documents Required for PM SVANidhi Loan Application
Applicants need to submit the following documents while applying for the PM SVANidhi Loan Application Form:
- Aadhaar Card (linked with mobile and bank account)
- Voter ID / Driving License / PAN Card (as identity proof)
- Bank Account Details
- Certificate of Vending or Letter of Recommendation
- Passport-size photograph
How to Apply for PM SVANidhi Loan Online?
Follow these steps to apply for PM SVANidhi loan online:
- Visit the Official Portal: Go to www.pmsvanidhi.mohua.gov.in.
- Click on "Apply for Loan" and enter your mobile number.
- Verify OTP and fill out the PM SVANidhi Loan Application Form.
- Upload Required Documents.
- Submit the Application and track its status online.
- Once approved, the amount will be credited to your bank account.
How to Avail the Street Vendors Loan?
After applying for the loan, it undergoes verification and approval by banks and financial institutions. Upon successful approval:
- The first loan of ₹10,000 is credited to your bank.
- After timely repayment, you can apply for the second loan of ₹20,000.
- Upon successful repayment of the second loan, you become eligible for ₹50,000 in the third phase.
Features of the PM SVANidhi Loan Scheme
- Loan Up to ₹50,000 available in three stages.
- Repayment period of 12 months with easy EMIs.
- 7% Interest Subsidy directly credited to the beneficiary’s account.
- No Collateral or Security required.
- Cashback Benefits on digital transactions.
Interest Rate, Tenure, and Other Details
| Feature | Details |
| Loan Amount | Up to ₹50,000 |
| Interest Subsidy | 7% per annum |
| Loan Tenure | 12 months |
| Collateral | Not required |
| Processing Fee | NIL |
| Repayment Mode | Monthly EMI |
Conclusion
The PM SVANidhi Loan Scheme is a significant step towards empowering small vendors by providing them with the financial means to expand their businesses. It ensures easy access to credit, low-interest rates, and financial security for thousands of vendors. However, if you are looking for additional financial support beyond this scheme, exploring other business loan options might be beneficial. Piramal Finance Business Loan offer tailored financial solutions that can further enhance business growth and sustainability. Whether you are a small entrepreneur or a street vendor aiming for expansion, choosing the right financial support can make a difference in achieving long-term stability and success.
Frequently Asked Questions (FAQs)
1. What is the main objective of the PM SVANidhi Scheme?
The scheme aims to provide financial assistance to street vendors, helping them restart and sustain their businesses with affordable working capital loans.
2. Who is eligible for the PM SVANidhi Loan?
Street vendors vending in urban or semi-urban areas on or before March 24, 2020, with valid identification or a recommendation from the Urban Local Body.
3. Which institutions provide the loan?
The loan is provided by Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, Cooperative Banks, and NBFCs.
4. What is the maximum amount of PM SVANidhi?
The maximum loan amount available under the scheme is ₹50,000, provided in three phases based on repayment history.
5. What is the last date to apply for PM SVANidhi Yojana?
The government announces deadlines periodically. Applicants should check the official PM SVANidhi website for the latest updates on the last date to apply.
6. How much is the initial working capital loan?
Eligible vendors can avail an initial loan of ₹10,000 under this scheme.
7. Do I need collateral for this loan?
No, the PM SVANidhi loan is completely collateral-free.
8. What is the interest subsidy provided?
A subsidy of 7% per annum is credited directly to the borrower’s bank account.
9. How long does loan approval take?
The loan is typically processed and approved within 30 days of application.
10. Who can I contact for grievances?
You can contact your nearest bank branch, ULB, or call the helpline number provided on the official website. If you have any more queries, feel free to visit the official website or approach a designated lending institution.