As of January 2026, MoHUA dashboard shows over 95 lakh loans sanctioned and over 80 lakh disbursed under SVANidhi (across all three tranches), with the first-tranche-to-second-tranche conversion rate around 32% — meaning about a third of borrowers like Lakshmi successfully graduated to the higher-ticket loan. Most stuck cases are in the Letter of Recommendation stage — vendors without a Certificate of Vending get bounced between the ULB and the bank.

PM SVANidhi is a Central Sector Scheme funded entirely by the Government of India to provide affordable working-capital credit to street vendors. The scheme covers vendors who were vending in urban areas on or before 24 March 2020 (the original cut-off) and was later extended to vendors who started after that date. With PM SVANidhi 2.0 (Cabinet approval 24 July 2025), the scheme is extended to 31 December 2027, the third loan tranche has been raised to ₹50,000, and capital subsidy on UPI transactions has been enhanced.

To be eligible, you must:

• Be a street vendor (defined under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014) operating in any urban / peri-urban / semi-urban area.
• Hold any of these documents (any one is enough — multiple acceptable identification routes):
  1. Certificate of Vending (CoV) issued by the ULB / Town Vending Committee, OR
  2. Vendor ID card issued by the ULB, OR
  3. Letter of Recommendation (LoR) from the ULB / TVC if you don't have CoV/ID, OR
  4. Surveyed-list inclusion (vendors identified in ULB's survey under the Street Vendors Act).
• Be the family head or sole income earner from vending (one beneficiary per family).
• Have an active bank account linked to Aadhaar for DBT of subsidy and cashback.

The legal anchors are the MoHUA scheme guidelines (Order F. No. K-15011/13/2020-UPA-V dated 1 June 2020) and the Street Vendors Act, 2014. The scheme is implemented through Small Industries Development Bank of India (SIDBI) as the implementing agency, with CSC SPV providing the technology backbone.

If you already have a Certificate of Vending or Vendor ID card from your ULB, skip to Step 2. If not:

• Visit your ward office (Municipal Corporation / Municipality / Nagar Panchayat).
• Ask for the “SVANidhi Letter of Recommendation” form — most ULBs have a single-page format.
• Provide: Aadhaar copy, recent photograph, current vending location address, two years of vending evidence (any of: customer slips, neighbour's affidavit, photo of stall, electricity bill of the vending site).
• The Town Vending Committee or designated ULB officer issues the LoR — usually in 15-30 days.
• No fee is charged for the LoR. Refuse to pay any “facilitation” demand.

Eligible lenders under SVANidhi:

• Scheduled Commercial Banks (SBI, PNB, BoB, BoI, Canara, Union, IDBI, etc.)
• Regional Rural Banks (RRBs)
• Small Finance Banks (SFBs) — Equitas, Ujjivan, AU SFB, ESAF, etc.
• Co-operative Banks (state and urban)
• Non-Banking Financial Companies (NBFCs) classified as Microfinance Institutions (MFIs)
• Self-Help Group (SHG) Banks (NRLM-linked)

For first-time borrowers without a CIBIL history, public-sector banks (SBI, PNB) and NBFC-MFIs are typically the most receptive. PSBs run dedicated SVANidhi camps every quarter — watch the SBI / PNB local branch noticeboard.

Two routes:

• Online (preferred): Download the PM SVANidhi mobile app (Google Play, by MoHUA) or visit https://pmsvanidhi.mohua.gov.in. Click “Apply Loan” → enter Aadhaar (OTP) → choose tranche (₹10K / ₹20K / ₹50K) → select lender → upload CoV / LoR + bank passbook → submit.
• Offline / CSC-assisted: Walk into your nearest CSC or directly into the lender's branch with documents. The branch officer fills the application on the lender's portal and submits to the SVANidhi platform.

After submission you receive an application ID on SMS. Save it.

The lender will:

• Conduct e-KYC via Aadhaar OTP.
• Run a soft-CIBIL check (no rejection for first-tranche based purely on low CIBIL — by scheme design).
• Verify the LoR / CoV / ID with the issuing ULB (some banks contact the ULB directly).
• Schedule a brief in-person verification at the vending site or in the branch.

Typical sanction timeline: 15-45 days for first tranche, faster for second / third tranche of repeat borrowers.

• Once sanctioned, sign the loan agreement at the branch (or e-sign).
• Tenure: 12 months (1st tranche), 18 months (2nd tranche), 36 months (3rd tranche under SVANidhi 2.0).
• EMI is auto-debited from your bank account; first EMI typically 30 days after disbursal.
• Disbursal is direct to your linked bank account — usually within 7 days of agreement signing.

You don't need to claim the interest subsidy. The scheme works as follows:

• You are charged interest at the lender's normal rate (varies — typically 12-24% depending on lender).
• Government pays 7% interest subsidy directly to your loan account quarterly (at end of June, Sep, Dec, March), reducing your effective interest rate by 7 percentage points.
• Subsidy continues only as long as you pay EMIs on time. Default → subsidy stops. Cure default → subsidy resumes from next quarter.

To encourage digital adoption among street vendors:

• Onboard yourself with at least one UPI / aggregator (PhonePe, Google Pay, Paytm for Business, BHIM, RuPay QR).
• Display the QR code at your stall.
• For every eligible digital transaction received in your linked account, you earn cashback:
  1. ₹1 per transaction for the first 100 transactions per month = up to ₹100/month
  2. Additional ₹50 cashback every quarter if you complete more than 50 digital transactions in any month of the quarter
• Cashback is auto-credited to your bank account by the partner aggregator + Government settlement.

• Repay your first tranche EMIs on time. Pre-payment is allowed without penalty.
• On full repayment of the ₹10,000 first tranche, you become automatically eligible for ₹20,000 second tranche — the lender often pre-approves it.
• On full repayment of the ₹20,000 second tranche, you graduate to the ₹50,000 third tranche under SVANidhi 2.0.
• The graduation is intended to nudge vendors from informal moneylenders into formal credit.

+-----------------------------------+----------------------------------------+
| Component                         | Amount / Detail                        |
+-----------------------------------+----------------------------------------+
| Application via app / portal /    | NIL official application fee.          |
| CSC / branch                      | Bank may charge nominal processing fee |
|                                   | (capped under scheme — check with      |
|                                   | branch).                               |
+-----------------------------------+----------------------------------------+
| Letter of Recommendation (LoR)    | Free at ULB. Refuse to pay any         |
| from ULB                          | "facilitation" demand.                 |
+-----------------------------------+----------------------------------------+
| Loan Tranche 1                    | ₹10,000 — 12 months tenure, no         |
|                                   | collateral, CGTMSE-backed.             |
+-----------------------------------+----------------------------------------+
| Loan Tranche 2                    | ₹20,000 — 18 months tenure, after      |
|                                   | timely repayment of Tranche 1.         |
+-----------------------------------+----------------------------------------+
| Loan Tranche 3 (SVANidhi 2.0)     | ₹50,000 — 36 months tenure, after      |
|                                   | timely repayment of Tranche 2.         |
+-----------------------------------+----------------------------------------+
| Interest subsidy                  | 7% subsidy on outstanding, credited    |
|                                   | quarterly directly to loan account.    |
+-----------------------------------+----------------------------------------+
| Digital transaction cashback      | ₹1 per UPI txn for first 100 txns/mo   |
|                                   | (₹100/month max) + ₹50 per quarter for |
|                                   | high-volume usage (> 50 txns / month). |
+-----------------------------------+----------------------------------------+
| Pre-payment penalty               | NIL.                                   |
+-----------------------------------+----------------------------------------+
| RTI for stuck application         | ₹10 by IPO to PIO MoHUA / ULB. BPL =   |
|                                   | free.                                  |
+-----------------------------------+----------------------------------------+

• No Certificate of Vending and ULB refuses to issue Letter of Recommendation — the most common stuck point. Insist on a written rejection from the ULB; that itself often unlocks action when escalated.
• Bank refuses on grounds of “no CIBIL” — incorrect application of policy. SVANidhi first-tranche does not require minimum CIBIL. Escalate to the SBI/PNB nodal officer for SVANidhi or to the SLBC.
• Aadhaar mobile not active — e-KYC fails; update at Aadhaar Seva Kendra.
• Bank account dormant or KYC outdated — standard KYC update at the branch (usually free).
• Family member already enrolled — one per family rule. Check status on the SVANidhi portal first.
• Subsidy not credited despite timely EMIs — usually a tagging issue between SIDBI and the lender; raise via the in-app grievance.
• Cashback for digital transactions not received — verify that your UPI VPA / merchant account is mapped to your loan account on the SVANidhi portal. Re-tag if needed.
• Loan disbursal delayed beyond 7 days post agreement — bank-side issue; ask for written reason and escalate to branch manager → zonal office → SLBC.

• Toll-free: 1800-11-1979 (8 am – 8 pm, Mon-Sat).
• Email: pmsvanidhi[at]mohua[dot]gov[dot]in.
• In-app grievance: PM SVANidhi app → “Grievance” → category-wise.
• Best for: application status, LoR issue tracking, subsidy non-credit.

• Each Municipal Corporation has a designated SVANidhi Nodal Officer (usually the Deputy Commissioner — UPA / Town Vending Cell).
• Best for: LoR refusal / delay, vending-zone disputes, ULB-level rejection.

• Branch manager → zonal office of the bank → bank's Nodal Officer for SVANidhi.
• State Level Bankers' Committee (SLBC) — convenor bank in each state has a SVANidhi cell. Email is on the SLBC website.
• RBI Banking Ombudsman (cms.rbi.org.in) for mis-selling / wrongful rejection.

• https://pgportal.gov.in → ministry “Ministry of Housing and Urban Affairs” → “PM SVANidhi”.
• 30-day SLA. Routes to a Director / Joint Secretary in MoHUA.

The MoHUA, the ULB, the State Urban Development Department, and SIDBI (when acting as scheme implementer) are public authorities under §2(h) of the RTI Act 2005. Lender banks, when handling a Government-subsidised scheme, are also typically held to be acting in a public capacity for the scheme records.

RTI helps here when:

• The ULB is sitting on your LoR application — RTI to PIO, [Municipal Corporation / ULB] asking for the file movement notings, current status and reason for delay on application no. _ dated _.
• The interest subsidy of 7% has not been credited despite on-time EMIs — RTI to PIO, MoHUA, Nirman Bhawan, New Delhi asking for the quarterly subsidy disbursement record against your loan account.
• Your loan was rejected without written reason — RTI to PIO of the lender bank (most PSU banks have a designated PIO at zonal level) asking for the rejection note, the credit appraisal sheet, and the policy basis for rejection.
• Cashback was earned but not credited — RTI to PIO MoHUA asking for the digital-cashback settlement file for your merchant ID for the relevant months.
• You were on the surveyed list but not issued an ID / CoV — RTI to PIO ULB for the survey list copy and the inclusion / exclusion notings.

See: RTI in 12 simple steps — for first-time filers.

RTI does NOT help here when:

• You are not a street vendor as defined under the 2014 Act (e.g., shop owner with a fixed pucca shop) — RTI cannot expand statutory eligibility.
• Your CIBIL is genuinely problematic for second / third tranche — work on credit history first.
• You want a higher loan amount than the third tranche of ₹50,000 — graduate to MUDRA (see related links).
• You want personal advice on what to stock or where to vend — RTI provides records, not commercial advice.
• You want the lender to give you the loan immediately — credit decisions involve discretion that RTI cannot compel.

Q. I am a vegetable vendor in a panchayat-area weekly haat (rural). Am I eligible?
SVANidhi is a primarily urban scheme. However, vendors in peri-urban and semi-urban areas covered by the ULB / Nagar Panchayat are eligible. Pure rural haat vendors are not — they should look at MUDRA Shishu instead.

Q. I have no Aadhaar. Can I still apply?
Aadhaar is required for e-KYC and DBT of subsidy. Get an Aadhaar enrollment first (free at any Aadhaar Seva Kendra; takes 30-90 days for first-time issue).

Q. I took the first ₹10,000 tranche but lost my livelihood (NPA). Can I re-apply?
Once an account becomes NPA, fresh SVANidhi loans are typically not given. Resolve the NPA via OTS (one-time settlement) with the lender, then re-apply after a cooling period — discretionary; no fixed time bar in scheme guidelines.

Q. The ULB officer is asking for ₹500 to issue the LoR. What do I do?
Refuse and report. The LoR is free under MoHUA guidelines. Complain to the ULB Commissioner in writing, and escalate via CPGRAMS. Anti-corruption complaint to the State Lokayukta is also an option.

Q. Does SVANidhi cover home-based artisans?
No. SVANidhi is for street vendors who sell goods or services in public spaces. Home-based artisans should look at PM Vishwakarma (see related links) or MUDRA Shishu.

Q. I am a hawker who moves between cities. Where do I apply?
Apply where you have your principal vending location — the ULB that issues your CoV / LoR will be the anchor. Don't apply in two cities — duplicate detection will reject both.

Q. Can I get the third tranche (₹50,000) directly without taking ₹10,000 + ₹20,000 first?
No. The scheme is graduated by design — repayment behaviour on the lower tranches qualifies you for the higher one.

• PM Vishwakarma scheme — full 2026 guide
• MUDRA Tarun loan up to ₹10 lakh — full 2026 guide
• PMAY Urban / Gramin housing — full 2026 guide
• RTI in 12 simple steps — for first-time filers
• All Indian government helplines — one master directory

Last reviewed: 26 April 2026 by RTI Wiki editorial team. SVANidhi 2.0 parameters were enhanced by Cabinet on 24 July 2025; verify current ceilings, subsidy rates and timelines on pmsvanidhi.mohua.gov.in or write to admin@bighelpers.in if you spot a stale figure.