PM SVANidhi is the government’s collateral-free working capital loan for street vendors, and a lot of what’s written about it is out of date. Plenty of pages still say it ended in 2022 or 2024, or that the first loan is ₹10,000. In August 2025 the Cabinet restructured it, raised the loan limits and extended it to 31 March 2030. This guide covers what it offers now, who qualifies, and where applications actually get stuck.
| Feature | Before the 2025 restructuring | Now |
|---|---|---|
| First loan | ₹10,000 | Up to ₹15,000 |
| Second loan | ₹20,000 | Up to ₹25,000 |
| Third loan | ₹50,000 | Up to ₹50,000 (unchanged) |
| Lending period | Until 31 December 2024 | Until 31 March 2030 |
| Digital cashback | Up to ₹1,200 a year (₹100 a month) | Up to ₹1,600 on retail and wholesale UPI transactions |
| Credit card | None | UPI-linked RuPay credit card after repaying the second loan |
| Interest subsidy | 7% a year on regular repayment | 7% a year on regular repayment (unchanged) |
The tenures are usually 12 months for the first loan, 18 for the second and 36 for the third, but check with your lender. The loans are collateral-free, and the scheme charges no application or processing fee and no prepayment penalty.
You can’t take a bigger loan until you’ve fully repaid the previous one. That makes on-time repayment the whole game. It’s also how you reach the ₹50,000 third loan and the credit card. The interest subsidy is paid only on regular repayment too, so missing instalments costs you the subsidy as well as the next tranche. Your lender sets the interest rate, and the 7% subsidy is credited back on timely repayment. Ask the lender what your effective rate will be.
The scheme is for street vendors who were vending in urban areas on or before 24 March 2020. The restructured scheme is also widening coverage from statutory towns to census towns and peri-urban areas. You need one of these as proof that you’re a vendor:
So you don’t need a vending certificate to qualify. The LoR route exists exactly for vendors who don’t have one.
The step where applications most often stall is the Letter of Recommendation, because it depends on your urban local body rather than the bank. If you don’t have a certificate, apply to your ULB for the LoR early, with whatever supports your vending claim (for example a bank statement or a vendor association card). The scheme charges no application or processing fee, and I found no official fee for the LoR either. Be careful of anyone who asks for money to “process” your loan. That’s a red flag.
Vendors who repay the second loan and qualify for the third can get a UPI-linked RuPay credit card, a domestic card for business and personal needs. Lender guides report an initial limit of up to ₹30,000, subject to conditions, but the official page said product details would be notified later, so confirm with your lender before counting on it. Loans from banks and similar lenders are usually reported to credit bureaus, so repaying on time also builds a credit record. Our guide on what a CIBIL score is explains why that matters.
These three are easy to confuse. PM SVANidhi is for street vendors and offers small working-capital loans of up to ₹50,000. PM Vishwakarma is for traditional artisans, with a toolkit grant, paid training and loans up to ₹3 lakh. A Mudra loan suits small businesses that need larger amounts. One thing to know before you choose: PM Vishwakarma’s rules exclude anyone who took a loan under a similar scheme, including PM SVANidhi, in the past five years. If you might qualify for both, think about the order.
Many street vendors can also register for the e-Shram card, which gives access to other government schemes.
Is PM SVANidhi still open in 2026?
Yes. The Cabinet extended the lending period to 31 March 2030 in August 2025. Pages that say it ended in 2022 or 2024 are out of date.
How much can I borrow?
Up to ₹15,000 first, then ₹25,000, then ₹50,000. Each new loan is available only after you fully repay the previous one.
Do I need a vending certificate to apply?
No. A Letter of Recommendation from your urban local body or Town Vending Committee works if you don’t have a certificate.
Is there any fee?
The scheme charges no application or processing fee and no prepayment penalty. Don’t pay anyone to process your application.
What is the 7% interest subsidy?
It’s a subsidy on your loan interest, paid on regular repayment. Miss instalments and you lose it.
Sources: the Union Cabinet’s restructuring decision of 27 August 2025 (reported by All India Radio), the Bank of Maharashtra and SBI PM SVANidhi pages, and lender guides, checked in October 2026. Terms can change, so confirm with your lender or the official portal before you apply. This is general information, not financial advice.
