The PM SVANidhi Yojana 2.0 is a big relief for street vendors across India. This scheme helps small vendors who sell goods on the roadside or footpaths. With the new updates in version 2.0, the government is giving bigger benefits like ₹50,000 loan, ₹30,000 RuPay credit card, and a 7% interest subsidy. This is a great chance for small vendors to grow their businesses without too much financial pressure.
Let’s understand everything in simple words.
What is PM SVANidhi Yojana?
PM SVANidhi (Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi) is a scheme started by the Central Government in June 2020. It supports street vendors to restart or expand their business after COVID-19. It provides easy and collateral-free loans in small amounts.
What’s New in PM SVANidhi Yojana 2.0?
In the second version of the scheme, the government has made major updates:
- Loan Limit Increased to ₹50,000
- RuPay Credit Card worth ₹30,000
- 7% Interest Subsidy on timely repayment
- Cashback on digital transactions
- No collateral required
These steps aim to boost digital payments, make credit accessible, and empower small vendors.
Key Features of PM SVANidhi Yojana 2.0
| Feature | Details |
| Loan Amount | Up to ₹50,000 in three steps (₹10,000 → ₹20,000 → ₹50,000) |
| Interest Subsidy | 7% per annum if repayment is on time |
| Credit Card | RuPay card with ₹30,000 limit |
| Repayment Period | 1 year for each loan step |
| Eligibility | All street vendors selling before March 24, 2020 |
| Security | No collateral or guarantor required |
| Digital Cashback | ₹100 cashback/month for digital transactions |
Loan Process
The loan is given in three stages:
- First Loan – ₹10,000
- Repay within 12 months.
- Pay EMI regularly to move to next loan.
- Repay within 12 months.
- Second Loan – ₹20,000
- After paying the first loan on time.
- After paying the first loan on time.
- Third Loan – ₹50,000
- For vendors who repay second loan on time.
- For vendors who repay second loan on time.
This step-by-step model helps vendors slowly grow their business with low risk.
₹30,000 RuPay Credit Card
Another big benefit in SVANidhi 2.0 is the RuPay Credit Card. After repaying the loan properly, street vendors can apply for this card. The credit limit is ₹30,000. This card helps them to buy goods, stock items, or meet any emergency needs.
7% Interest Subsidy
If a vendor repays the loan on time, the government gives a 7% interest subsidy directly into their bank account. For example, if you took a ₹10,000 loan and your bank charges 12% interest, the government will pay 7% and you only need to pay 5%.
This makes the loan cheaper and affordable.
Eligibility
To apply under this scheme, you must:
- Be a street vendor who was doing business before 24 March 2020.
- Have a Certificate of Vending or letter of recommendation from local authority.
- Be at least 18 years old.
- Have an Aadhaar Card, bank account, and mobile number linked with Aadhaar.
How to Apply?
You can apply for PM SVANidhi 2.0 online or offline:
Online Application:
- Visit: www.pmsvanidhi.mohua.gov.in
- Fill in your details
- Upload required documents
- Submit your application
Offline Application:
- Visit nearby bank, municipality office, or Common Service Centre (CSC)
- Fill the form and give documents
- Bank verifies and processes the loan
Benefits of Digital Transactions
Vendors who use UPI, QR Code, or Digital Wallets for business will receive monthly cashback of up to ₹100. It also helps them build a credit history which is useful for future loans.
Documents Needed
- Aadhaar Card
- Voter ID or Ration Card
- Mobile Number linked to Aadhaar
- Bank Passbook
- Certificate of Vending or letter from urban local body
Final Words
PM SVANidhi Yojana 2.0 is a powerful support system for India’s small vendors. With more money, digital tools, and low-interest loans, it helps them become financially independent. Street vendors can now expand their business, buy new stock, and serve more customers with peace of mind.