Credit tranches and financial incentives
PM SVANidhi provides graduated credit limits tied to prompt repayment performance.
Loan structure and incentives:
- Initial working capital tranche: Collateral-free working capital loan for a 1-year repayment tenure to restart business.
- Second tranche: Enhanced loan limit upon prompt or early repayment of the initial facility.
- Third tranche: Substantial higher working capital limit for expanding micro-enterprise activities.
- Interest subsidy: An interest subsidy is credited directly via DBT into the vendor's bank account on timely quarterly repayment.
- Digital transaction cashback: Monthly cashback rewards for conducting sales transactions via UPI QR codes.
Eligibility criteria for street vendors
The scheme covers street vendors operating in urban and peri-urban locations.
Eligibility norms:
- Possession of a Certificate of Vending or Identity Card issued by the Urban Local Body (ULB) / Town Vending Committee (TVC).
- Vendors identified in the municipal survey but not yet issued cards can apply using a Letter of Recommendation (LoR).
- Vendors of surrounding peri-urban and rural areas vending in geographical limits of urban local bodies are eligible.
- Valid Aadhaar card linked with an active mobile number and bank account.
Application process and portal tracking
Vendors can apply online via the official scheme portal (pmsvanidhi.mohua.gov.in) or mobile app, or seek assistance at local Common Service Centres (CSCs) and municipal ward offices. Loan applications are routed electronically to selected lending banks without physical paperwork.
Official source
Check the latest rules, benefits and forms here. KisanPe is an independent platform and is not a government website.
PM SVANidhi Portal, Ministry of Housing and Urban Affairs ↗Related on KisanPe
Common questions
What is the PM SVANidhi scheme?
It is a central micro-credit scheme providing collateral-free working capital loans and interest subsidies to urban and peri-urban street vendors.
Is collateral security required for loans under PM SVANidhi?
No, all loan tranches under the PM SVANidhi scheme are completely collateral-free.
What incentive is provided for conducting digital UPI transactions?
Registered vendors receive monthly digital cash-back incentives credited to their bank accounts for processing sales through UPI QR codes.
General guidance, not personal advice. For your farm, ask your local Krishi Vigyan Kendra or agriculture officer.
More Government Schemes & Subsidies guides
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