The PM SVANidhi Yojana has quietly become one of India’s most helpful government schemes for small street vendors. While many people know it as the “₹10,000 loan scheme,” there is a lot more to understand—especially at a time when thousands of vendors are trying to rebuild their livelihood.

In this article, we break down what the scheme really offers, who can apply, how the process works, and why so many vendors are still searching for updated information online. The goal is to make it simple enough for anyone, even someone who is applying for a government loan for the first time.

What Is the PM SVANidhi Yojana?

The Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) is a government-backed micro-credit scheme launched to support street vendors who lost income during the pandemic years. The main idea is to offer small, collateral-free loans, starting from ₹10,000, so vendors can restart or expand their business without falling into debt traps.

Street vendors often depend on daily earnings, and without a strong financial backup, many struggle to invest in basic things like new stock, pushcarts, or even repairing old equipment. This scheme tries to fill that gap.

Why the Scheme Still Matters Today

Even though the scheme started in 2020, it remains relevant because street vending hasn’t fully recovered in many cities. The cost of fruits, vegetables, tea stalls, and even repairing tools has gone up.

A tea seller in Guwahati shared with us that a basic set-up now requires more than ₹8,000 worth of materials. “A small loan gives breathing space,” he said. “You don’t have to borrow from someone who charges interest daily.”

This kind of real-world situation is why thousands of people search daily for information on how to apply or check their loan status.

Key Features of PM SVANidhi Yojana

1. Collateral-Free Loan

The government does not ask for property papers or security.
This makes it accessible for roadside vendors who don’t have formal documents.

2. Loan Amount in Three Stages

The scheme offers credit in a gradual manner:

₹10,000 – First loan
₹20,000 – Second loan (after repaying the first)
₹50,000 – Third loan (after repaying the second)

This helps vendors grow step by step.

3. Interest Subsidy

A 7% annual interest subsidy is provided, credited directly into your bank account.
It reduces the pressure of repayment.

4. Cashback Up to ₹1,200

For doing digital transactions like UPI payments or QR code sales, vendors get monthly cashbacks.

5. Easy Online Application

The entire process—from applying to checking status—can be done online through the official MOHUA portal.

Who Can Apply for the PM SVANidhi Loan?

Street vendors in:

Urban areas
Surrounding rural towns
Small municipal zones

Eligible categories include:

Vegetable and fruit sellers
Tea/coffee stall vendors
Barber shops
Tailors
Cobblers
Cart vendors
Small snack sellers
Repair service providers

The applicant must have:

A valid ID proof (Aadhaar is common)
A vendor certificate or recommendation letter from the local body

If someone does not have documents, they can request a certificate of vending from the local authorities.

How to Apply for PM SVANidhi Loan (Step-by-Step Guide)

Applying online sounds complicated to many vendors, but the process is quite simple when followed slowly.

1. Visit the Official Website

Go to the government portal: pmsvanidhi.mohua.gov.in
Here, the homepage clearly displays the application options.

2. Register with Mobile Number

Enter your mobile number → You’ll receive an OTP → Verify it.

3. Fill Basic Information

The form asks for:

Name
Address
Aadhaar number
Vending category
Area of operation
Bank details

Take your time; there is no need to rush.

4. Upload Required Documents

Usually needed:

Aadhaar card
Vending certificate or recommendation letter
Bank passbook copy
Passport-size photo

If you don’t have a vending certificate, the portal will guide you on getting one.

5. Submit and Wait for Verification

The local body verifies your details.
If everything matches, the loan is approved and forwarded to the bank.

6. Loan Disbursement

Once the bank checks your details, the amount is credited directly into your bank account.

How to Check PM SVANidhi Loan Status

Many vendors want to know where their application stands.
The loan status can be checked online:

Steps to Check Status

Visit pmsvanidhi.mohua.gov.in
Click “Vendor Login”
Enter mobile number
Verify OTP
Dashboard will show:
- Application received
- Under verification
- Approved
- Rejected
- Payment in progress

A few people have shared that status sometimes takes a few days to update, especially during verification. This is normal.

Documents Required for PM SVANidhi Application

Mandatory

Aadhaar Card
Mobile Number
Bank Account (active)
Vending Certificate / Recommendation Letter

Optional (but useful)

PAN card
Municipal ID
Business photo

Some vendors do not have PAN; that won’t stop the application for the first loan.

Why Banks Are Encouraged to Approve These Loans

Banks usually hesitate with small loans, but the government has made this scheme low-risk for banks by offering:

Interest subsidy
Credit guarantee support
Digital transaction benefits

This pushes banks to approve more applications without asking for heavy documents.

An official from a public-sector bank shared that these loans “help maintain financial inclusion” and are easier to track through digital repayments.

Common Problems Vendors Face While Applying

Even though the system is online, a few issues still occur:

OTP not coming due to network issues
Document upload errors
Rejection due to mismatched details
Not having the vending certificate
Application stuck under verification

Most of these can be solved by visiting the nearest municipal office or bank branch with correct documents.

Is the Scheme Beneficial?

For many small vendors, even a ₹10,000 loan provides stability to buy fresh stock or repair old tools.
A vegetable seller in Ranchi mentioned that without this loan, he would have borrowed money at daily interest, which often traps people in long-term debt.

The scheme may not solve every financial problem, but it certainly gives a safer alternative compared to informal lenders.

FAQs

1. What is the interest rate for the PM SVANidhi loan?

Interest varies by bank, but the government provides a 7% subsidy credited directly to your account.

2. Is collateral required for the loan?

No, the loan is completely collateral-free.

3. Can I apply without a vending certificate?

Yes, but you will need a recommendation letter or temporary certificate from your local municipal body.

4. How long does approval take?

Usually a few days to a few weeks, depending on the verification process.

5. Can existing borrowers get a second loan?

Yes. After repaying the first loan on time, you become eligible for ₹20,000 as the second loan.

Conclusion

The PM SVANidhi Yojana continues to support thousands of street vendors who are trying to rebuild their business with dignity. The scheme is simple, transparent, and designed for people who often get left out of formal banking systems. With clear information and proper documentation, anyone can apply and receive the benefits.

If more people become aware of how easy the process is, the scheme can help even more families become financially stable.

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