PM SVANidhi: Here’s how street vendors can apply for loan facility

Street vendors were the most troubled faction post lockdown, courtesy of the economic hailstorm that transpired in the wake of the global threat. However, the government was quite proactive to understand their plight and introduce the PM Svanidhi Yojana in the process. Launched way back in 2020 by the MHUA, this scheme strictly aims at providing easy, quick, and hassle-free credit facilities to these street vendors who often find it hard to make ends meet when the public starts showing up less on the streets.

How does the PM svanidhi Yojana Work?

This scheme aims at offering working capital to the vendors, for helping them manage overhead costs and even livelihood expenses, even when the business runs dry. However, not every application gets accepted as the background check pertaining to the PM Svanidhi Yojana is pretty stringent.

Plus, this loaning scheme adheres to the concepts of speed, accountability, and transparency. Therefore, it is common for several vendors to have their applications rejected in the process as the eligibility concerns take holistic socio-economic factors into consideration.

Details that Matter

A business loan for the street vendors is often hard to come by. However, with this credit-specific scheme, eligible applicants can get a working loan amount of up to Rs. 10,000. At present, the government is actively trying to extend coverage to up to 50 Lakh  vendors, thereby helping them resume work and manage resource procurement.

The payable interest rate is fixed at 7 percent, which is quite competitive for the business loan. However, the most heartening aspect of this credit scheme is the Rs. 1,200  cashback that is remitted yearly for those who make repayments in time and prefer digital transactions over other methods of repayment.

Most importantly, the Rs. 1,200 cashback comprises 30% of the overall interest burden, which is one of the better aspects of this loaning scheme.

How to Manage Stuff using the Mobile App?

On the 17th of July, the Indian Government launched a dedicated mobile application for helping vendors manage the loan application, remittances, and loan management better. Plus, the interface itself is quite interactive and can be used by any person, regardless of his or her exposure to tech.


For street vendors, the PM svanidhi Yojana seems like a good way to resume their business. However, the pre-loan background checks are quite stringent and you need to have every validating document in place to get the process underway. But then, if getting approved is doubtful, you can check for other options at the Finserv MARKETS.