Rs 30,000 credit for vendors! Know how to apply for PM SVANidhi scheme

The Prime Minister's Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme has been launched to benefit street vendors. Its aim is to improve their lives.

What is the Prime Minister's Swanidhi Scheme?

It is a micro-credit scheme launched by the Ministry of Housing and Urban Affairs in June 2020. Under this scheme, collateral-free loans are provided, without any hassle regarding strict repayment rules. They plan to include about 5 million vendors. Furthermore, interest subsidy claims under the scheme are paid until March 2028.

Loans are provided in cycles under this scheme. Loans can be provided under three cycles through this system. In the first cycle, a maximum of ₹10,000 to ₹20,000 and in the third cycle, a loan of up to ₹50,000 can be provided. The repayment time for these loans is different.

What are the benefits of repaying the loan on time?

Paying on time will bring future benefits. It also helps in getting higher loans in the next round. There is also a 7% annual interest subsidy and an annual cashback reward of ₹1200 for timely repayment of loans.

Is there any prepayment penalty?

No, there are no loan prepayment charges.

What are the eligibility criteria of the scheme?

Any street vendor who is working in urban areas on or before March 24, 2020, selling goods such as fruits, vegetables, and ready-to-eat street food, or providing services such as barber shops and laundry is eligible. Applicants without a certificate of sale are also eligible and can apply for a temporary certificate after conducting a local inquiry.

PM SWANidhi online application makes it easy to access the loan. Street vendors can use the web application to apply for a loan and check the status of the application.

This scheme has been primarily launched for the financial assistance of street vendors. So that they can restore their lives after the epidemic by providing a special portal. Overall, it will receive an additional positive contribution to the country's gross domestic product.

In fact, Finance Minister Nirmala Sitharaman announced the issuance of credit cards under the Prime Minister Swanidhi scheme in her 2025 budget speech.

“The Prime Minister Swanidhi scheme has benefited more than 6.8 million street vendors, thus giving them a break from high-interest informal sector loans. Building on this success, the scheme will be renewed with enhanced loans from banks, UPI-linked credit cards with a limit of ₹30,000, and skill development support,” she said.