PM SVANidhi Scheme: The government launched the SVANidhi Scheme for small street vendors and hawkers. Previously, this scheme only provided assistance of up to ₹80,000, but the government has now increased it to ₹90,000, and the last date for applying has been extended to March 31, 2030. This scheme is a boon for empowering small shopkeepers financially. Eligible beneficiaries can now receive loans up to ₹90,000, and the most important feature is that you don’t need any additional documentation or guarantees; you can get this loan simply by providing your Aadhaar card.
What is PM SVANidhi Scheme?
The PM SVANidhi Scheme (Pradhan Mantri Street Vendor Atmanirbhar Nidhi) was launched by the Government of India on June 1, 2020, for street vendors and hawkers. This scheme previously provided loans up to ₹80,000 without collateral, which has now been increased to ₹90,000. Loans are disbursed in three tranches without collateral, and a 7% annual interest subsidy is transferred directly to beneficiaries’ bank accounts upon timely repayment.
A monthly cashback of ₹100 is also provided to promote digital transactions using UPI. No collateral is required for availing this loan. This scheme is primarily aimed at street vendors, hawkers, and hawkers who sell vegetables, fruits, tea, and clothing in urban or surrounding rural areas. Now the deadline for applying in this has also been extended, applications can be made till 31 March 2030.
How to get a loan of ₹90,000?
The PM SVANidhi Scheme provides eligible beneficiaries with a loan of up to ₹90,000. It’s not a one-time disbursement, but rather three installments. As you repay your previous loan on time, your loan limit is increased. The first installment provides a loan of up to ₹15,000 for starting a business, which must be repaid within 12 months. The second installment provides a loan of up to ₹25,000, which is only available if you have repaid the first loan on time. The third installment provides a loan of up to ₹50,000, which is available only after the successful repayment of the second loan.
Interest subsidy and cashback
The PM SVANidhi Scheme not only provides a loan, but if you pay your loan installments on time, the government also provides a 7% interest subsidy, which is directly transferred to your bank account, and rewards are also given for digital transactions. The government offers this to promote digital payments (UPI), offering a cashback of ₹100 per month, or ₹1200 per year.
Required Documents
Applying for the PM SVANidhi Scheme doesn’t require any paperwork. You can also take a loan using just your Aadhaar card. The only documents required are your Aadhaar card and your mobile number linked to your Aadhaar. Other documents include a vending certificate or identity card. If you don’t have these, you can apply for a Letter of Recommendation (LoR). Candidates must also have a bank account where the loan amount will be transferred.
How to apply for the scheme
It is very easy to apply for the PM SVANidhi Scheme. You can apply yourself from its official website by visiting the online portal or you can also go to any nearby government bank, regional rural bank or Common Service Center (CSC) and get the form and fill it. Or you can also apply for it through the PM SVANidhi App on your mobile phone and can also check the status of the application.
