What the scheme is
PM SVANidhi was started in June 2020 by the Ministry of Housing and Urban Affairs to help street vendors restart and grow their business with working capital. Loans are given by banks and other lenders without collateral.
What changed in August 2025
On 27 August 2025 the Union Cabinet approved a restructured scheme:
| Before | Now | |
|---|---|---|
| First loan | Up to ₹10,000 | Up to ₹15,000 |
| Second loan | Up to ₹20,000 | Up to ₹25,000 |
| Third loan | Up to ₹50,000 | Up to ₹50,000 |
- The lending period now runs until 31 March 2030.
- Vendors who repay the second loan on time can get a UPI-linked RuPay credit card for business and personal needs.
- Digital payments earn cashback of up to ₹1,600.
Who can apply
Street vendors selling in urban areas who have:
- a Certificate of Vending or identity card issued by the urban local body, or
- a Letter of Recommendation (LoR) from the urban local body or Town Vending Committee, applied for through the PM SVANidhi portal (for vendors left out of the vending survey).
Interest subsidy
The scheme has paid an interest subsidy (7% a year under its guidelines) to vendors who repay regularly, credited to the loan account. Check the current terms on the official portal, as they can change with the restructuring.
How to apply
- Apply on the PM SVANidhi portal yourself, or through a Common Service Centre, your bank, or the urban local body office.
- Keep Aadhaar (linked to your mobile), your vending certificate or LoR and bank account details ready.
- Repay on time: each loan repaid unlocks the next, larger one.
Beyond SVANidhi
When the business grows past these amounts, the next steps are usually PM Mudra Yojana or a regular business loan from banks and NBFCs.
Oxon Fintech is not a government agency and does not take applications for this scheme. Apply on the official portal or at a bank branch, and be careful of anyone who asks for money to get a scheme loan approved. Scheme rules change; check the official site before you apply.