PM SVANidhi Yojana 2026: ₹15,000-₹50,000 Loan, How to Apply

PM SVANidhi is the government's collateral-free loan scheme for street vendors: a first loan of up to ₹15,000, then ₹25,000 and then ₹50,000, with a 7% a year interest subsidy and digital cashback for paying back on time. As of October 2026 the scheme is active, and loans can be given until 31 March 2030. If you sell from a cart, footpath, stall or door to door in a town or its surrounding area, you can apply on the PM SVANidhi portal for free.

The Union Cabinet restructured the scheme on 27 August 2025, raised the first two loan amounts, extended lending to March 2030 and widened coverage to census towns and peri-urban areas. The figures below come from the Ministry of Housing and Urban Affairs (MoHUA) operational guidelines and PIB releases as of October 2026.

What PM SVANidhi gives you

PM SVANidhi (PM Street Vendor's AtmaNirbhar Nidhi) is run by MoHUA with the Department of Financial Services. SIDBI runs the portal. It is still a bank loan that you must repay, but the scheme makes it easier to get and cheaper to carry.

Other features, as per the guidelines:

• No collateral, no margin money. You sign only a demand promissory note and an undertaking. The loans carry a CGTMSE guarantee at no cost to you.
• 7% a year interest subsidy, credited to your account every quarter, but only for months in which your loan is regular (not an NPA).
• No prepayment penalty. You can close the loan early.
• Digital cashback of up to ₹1,600 for using UPI and other digital payments in your business, according to PIB.
• UPI-linked RuPay credit card with a limit of up to ₹30,000 for vendors who repay the second loan on time.
• No Udyam registration and no project report are required.

Who is eligible

You must be 18 or older (there is no upper age limit) and be a street vendor as defined in the Street Vendors Act, 2014: someone who sells goods, food or services in a street, footpath, park or other public place, from a temporary structure or by moving around. Seasonal vendors qualify too. You need one of these:

1. A Certificate of Vending (CoV) or identity card issued by your urban local body (ULB) or Town Vending Committee, or
2. A Letter of Recommendation (LoR) issued digitally through the PM SVANidhi portal by your ULB (if you were left out of the vending survey or started vending later), or
3. For vendors in census towns and peri-urban areas, an LoR approved by the Block Development Officer (BDO).

Manually issued LoRs are not valid. Everything goes through the portal.

Documents required

The guidelines tell lenders not to ask for anything beyond this list:

• CoV, ULB identity card or LoR (as above)
• Aadhaar card (voter ID only for vendors in Assam and Meghalaya who do not have Aadhaar)
• Savings bank account passbook or bank statement
• A valid UPI ID linked to that bank account

It helps if your mobile number is linked to Aadhaar, because OTP verification and scheme messages depend on it.

How to apply for PM SVANidhi online

1. Go to the official portal, pmsvanidhi.mohua.gov.in, or use the PM SVANidhi mobile app. You can also apply at your municipal or block office, or at an authorised Common Service Centre (CSC).
2. If you have a CoV or ID card, apply directly for the loan and choose your preferred lender.
3. If you do not, fill the combined "LoR cum loan application". Your ULB or block office verifies you in the field and then issues the LoR digitally.
4. Enter your bank and UPI details. A valid UPI ID linked to your account is mandatory.
5. The application goes to your chosen lender (bank, regional rural bank, small finance bank, co-operative bank, NBFC or microfinance institution). It sanctions the loan and credits it to your savings account.
6. Repay in monthly instalments. Once you finish, the lender marks the loan closed on the portal and you can apply for the next loan.

Track your application status on the same portal with your mobile number.

Worked example: what a ₹15,000 loan really costs

Suppose a vegetable vendor takes the first loan of ₹15,000 for 12 months, and the lender charges an illustrative 12% a year.

• Monthly rate r = 12 / 12 / 100 = 0.01, n = 12
• EMI = P × r × (1 + r)^n / [(1 + r)^n − 1] = 15,000 × 0.01 × 1.1268 / 0.1268 = ₹1,333
• Total interest = ₹1,333 × 12 − ₹15,000 = about ₹993
• Interest subsidy if every EMI is paid on time = up to ₹603 (the official cap for a ₹15,000 loan)
• Net interest cost = ₹993 − ₹603 = about ₹390

That is close to borrowing at 5% (₹15,000 at 5% for 12 months costs about ₹409 in interest). On the third loan of ₹50,000 over 36 months at the same 12%, the EMI is about ₹1,661 and interest about ₹9,786; the maximum subsidy of ₹5,579 brings the net cost down to about ₹4,207. Miss EMIs and the account turns irregular, and you lose the subsidy for those months. Try your own lender's rate in the EMI calculator.

Why PM SVANidhi applications get returned or rejected

• No valid CoV, ID card or LoR, or an LoR made on paper instead of the portal.
• Existing NPA or written-off loan. This is the one credit reason the guidelines allow. A low CIBIL score by itself is not a valid reason. You can check your report for free; see how to check your CIBIL score free.
• Wrong or missing UPI ID, or a UPI ID not linked to the account you gave.
• Aadhaar and mobile mismatch, so OTP verification fails.
• Previous loan not closed on the portal. If you have repaid but cannot apply for the next loan, ask the branch to mark the loan closed.

Lenders are told not to return applications on trivial grounds. If yours is returned, the ULB or block office should contact you, help fix it and resubmit.

How to complain if your loan or subsidy is stuck

1. Branch or lender first. Ask in writing why the application was returned or the subsidy is missing, and note the date.
2. Your ULB or block office. It is responsible for LoR issues and for following up with lenders.
3. MoHUA helpline 1800-11-1979 (toll free, working hours).
4. RBI Integrated Ombudsman. If a bank or NBFC does not reply within 30 days or you are unhappy with the reply, complain at cms.rbi.org.in.
5. CPGRAMS at pgportal.gov.in for complaints about a government office.

Beware of fake websites and agents. The only official portal is pmsvanidhi.mohua.gov.in. Nobody needs to "approve" your loan for a fee, and nobody needs your OTP, UPI PIN or ATM PIN. If you have already paid a fraudster, report it at cybercrime.gov.in or call 1930. See our guide on reporting loan fraud.

When PM SVANidhi is not the right fit

PM SVANidhi is built for small working capital. If you have a shop or unit rather than a street stall, or you need more than ₹50,000, a Mudra Shishu or Kishore loan is the usual next step; see business loans and Mudra loans. If you are a traditional artisan, look at PM Vishwakarma Yojana, which lends up to ₹3 lakh at 5%. For the full list, read our comparison of government business loan schemes.

Key takeaways

• PM SVANidhi is active as of October 2026, and loans can be given until 31 March 2030.
• Loans are ₹15,000, then ₹25,000, then ₹50,000, each after full repayment of the previous one, with no collateral.
• A 7% a year interest subsidy is credited quarterly if you repay on time; a ₹15,000 loan at 12% ends up costing about ₹390 in net interest.
• A low CIBIL score is not a reason for rejection; an existing NPA or written-off loan is.
• Apply free on pmsvanidhi.mohua.gov.in, the app, your municipal office or a CSC; never pay an agent.