PM SVANidhi Loan for Street Vendors: 2025 Changes and How to Apply

This guide is for street vendors in Bihar — the thela, rehri and patri sellers of fruits, vegetables, chaat, momos, tea, clothes and small goods — who want a small working capital loan without collateral. It explains the PM SVANidhi loan as restructured in 2025: the new ₹15,000, ₹25,000 and ₹50,000 tranches, the 7% interest subsidy, digital cashback, the UPI-linked credit card, and exactly how to apply with a vending certificate or Letter of Recommendation from your nagar nigam.

What is PM SVANidhi?

PM SVANidhi (Prime Minister Street Vendor's AtmaNirbhar Nidhi) is a scheme of the Ministry of Housing and Urban Affairs, started in June 2020 to help street vendors restart after the COVID lockdown. It gives small, collateral-free working capital loans that grow as you repay on time.

On 27 August 2025 the Union Cabinet approved a restructuring and extension of the scheme. The lending period now runs till 31 March 2030, with a total outlay of ₹7,332 crore and a target of about 1.15 crore beneficiaries, including 50 lakh new vendors. The official portal is pmsvanidhi.mohua.gov.in.

What changed in the 2025 restructuring?

• Bigger first loan: first tranche raised from ₹10,000 to ₹15,000.
• Bigger second loan: second tranche raised from ₹20,000 to ₹25,000.
• Third loan unchanged: up to ₹50,000.
• UPI-linked RuPay credit card: vendors who repay the second loan can get a credit card with a limit of up to ₹30,000.
• Cashback on digital payments: up to ₹1,600 in total for retail and wholesale digital transactions.
• Wider coverage: the scheme now goes beyond statutory towns to census towns and peri-urban areas.

This matters a lot in Bihar, where many vendors work in growing semi-urban areas around Patna, Gaya, Muzaffarpur and Bhagalpur that are not formal municipal areas.

PM SVANidhi loan amount, tenure and interest subsidy

• 1st tranche: up to ₹15,000, repay in 12 months.
• 2nd tranche: up to ₹25,000, repay in 18 months (after repaying the first).
• 3rd tranche: up to ₹50,000, repay in 36 months (after repaying the second).

The interest rate is the normal rate of the lending institution (bank, regional rural bank, cooperative bank, NBFC or MFI). On top of that, the government gives an interest subsidy of 7% per year, credited to your loan account as long as the account stays standard (not overdue into NPA). There is no collateral and no prepayment penalty — you can repay early and move to the next tranche sooner, though a minimum repayment period applies before the next loan.

Worked example: a fruit vendor in Patna

Raju sells fruits near Boring Road. He takes ₹15,000 in the first tranche to buy stock from the Bazar Samiti mandi in bulk instead of on credit from a middleman. That is roughly ₹1,300-1,400 a month in EMI including interest, or under ₹50 a day. Because the 7% subsidy comes back into his loan account, his real cost is much lower than a local moneylender's daily interest. When he repays on time he becomes eligible for ₹25,000, then ₹50,000 — enough to buy a proper cart with a shade and a weighing machine.

Digital cashback: how it works

To push vendors towards UPI, the scheme pays cashback:

• Retail: ₹1 per qualifying digital transaction, up to ₹100 a month, for up to 12 months per tranche.
• Wholesale purchases: ₹20 for each digital purchase above ₹2,000, up to five transactions a quarter (maximum ₹100 per quarter).

The total cashback is capped at ₹1,600. More important than the cashback is the record: every UPI payment builds a history that banks use to decide your next loan. Read our guide on UPI QR codes for small businesses to avoid fake-payment tricks.

The UPI-linked RuPay credit card

Once you have repaid the second tranche, you can get a UPI-linked RuPay credit card with a limit of up to ₹30,000. You can pay suppliers by scanning a QR code and repay within the billing cycle. Use it only for stock and repay in full every month — a credit card is expensive if you carry a balance. Our CIBIL score guide for business owners explains why on-time repayment matters.

Who is eligible for PM SVANidhi?

• You must be 18 years or older.
• You must be vending in the area where you apply (your Aadhaar address does not have to match).
• You need one of these:
• A Certificate of Vending (CoV) or Identity Card issued by your Urban Local Body (nagar nigam, nagar parishad or nagar panchayat) or Town Vending Committee, or
• A Letter of Recommendation (LoR) from the ULB or Town Vending Committee if you were left out of the vending survey, or
• In peri-urban areas and census towns, a Letter of Recommendation approved by the Block Development Officer (BDO).

Many vendors in Bihar were covered in the ULB vending surveys. If you were not, go to your nagar nigam office (for example Patna Municipal Corporation's circle office) or the BDO office and ask for the LoR process.

Documents needed

• CoV, vendor ID card or LoR
• Aadhaar card
• Savings bank account passbook
• A working UPI ID linked to your bank account
• Mobile number (preferably linked with Aadhaar)

How to apply for PM SVANidhi (step by step)

1. Get your CoV, ID card or LoR from the ULB, Town Vending Committee or BDO.
2. Make sure your bank account is active and your UPI ID works.
3. Apply on the PM SVANidhi portal or mobile app. If you are not comfortable online, ask the nagar nigam's help desk or a nearby CSC centre to help you fill the form.
4. Choose the lending institution; the application is forwarded to it.
5. The bank verifies and disburses the loan into your account.
6. Start using UPI for sales and purchases to earn cashback.
7. Repay EMIs on time; the 7% subsidy is credited periodically.

There is no application fee. Nobody should charge you to "sanction" the loan.

SVANidhi se Samriddhi: extra welfare benefits

Under the linked "SVANidhi se Samriddhi" programme, beneficiaries and their families are profiled and linked to eight Central welfare schemes (such as insurance and pension schemes). Ask about it when your loan is sanctioned.

Common mistakes vendors make

• Taking the loan and not using UPI. You lose cashback and your credit history stays thin.
• Missing EMIs. A late account loses the interest subsidy and blocks the next tranche.
• Paying agents. Apply yourself or through official help desks.
• Borrowing from moneylenders at the same time. Clear expensive daily-interest loans first with the SVANidhi money.
• Not keeping the vending certificate safe. It is also useful if there is a dispute about your vending spot.

Checklist

• CoV / ID / LoR ready
• Aadhaar and bank account in your own name
• UPI ID linked and tested
• Clear plan: what stock you will buy and how you will repay daily or weekly
• A notebook or app to track daily sales — see how to keep shop accounts

Next steps

Start with your vending certificate or LoR, then apply online. Once your stall has a fixed spot and timings, put it on the map: list your business free on Bihar Directory so nearby customers can find your stall, call you or see your offers. Hindi readers can share our Hindi guide पीएम स्वनिधि: रेहड़ी-पटरी वालों के लिए लोन with fellow vendors.

This is general information, not financial advice. Confirm current loan amounts, interest and eligibility on pmsvanidhi.mohua.gov.in or with your bank before applying.