SIDBI (Direct Financing)Working Capital Facility (CC / OD)Street Vendors & Micro-tradersVerified: 2026-09-29

PM SVANidhi - 1st Tranche Collateral-Free Micro Loan (₹10,000)

Primary Lending Institution:Small Industries Development Bank of India (SIDBI)

₹10,000 collateral-free working capital loan for street vendors with 7% interest subsidy.

Connected Central Government Scheme: PM SVANidhi - 1st Tranche Collateral-Free Working Capital Loan (₹10,000)View Government Scheme Guidelines →

Interest Rate7.00% – 9.50% (7% Interest Subsidy applies)Linked to EBLR / MCLR / Risk

Loan Amount QuantumUp to ₹10,000Based on turnover & project cost

Repayment Tenure1 Year (12 monthly EMIs)With moratorium where applicable

Collateral SecurityStrictly zero collateral and zero third-party guarantee

What's Missing: Crucial Fine-Print & Exclusion Gaps

Requires street vendor identification (Certificate of Vending or ULB Letter of Recommendation). Strictly capped at ₹10,000 for 1st cycle.

Note: Eligo publishes these regulatory and commercial exclusions directly from bank product guidelines and CGTMSE rules to protect MSME applicants from unexpected fee debits or loan rejection surprises.

What is PM SVANidhi - 1st Tranche Collateral-Free Micro Loan (₹10,000)?

First-step micro-credit facility administered by MoHUA and SIDBI enabling urban street vendors to resume or scale livelihoods with a collateral-free working capital loan up to ₹10,000.

Key Benefits & Features

7% interest subvention paid directly by MoHUA into savings account; up to ₹100 monthly cashback on digital UPI transactions; builds formal credit bureau footprint.

Government Subsidy & Credit Guarantee Coverage

7% per annum interest subsidy directly credited to bank account; digital cashback up to ₹1,200/year

Enterprise Eligibility Criteria

Street vendors engaged in vending in urban areas on or before March 24, 2020, with Certificate of Vending (CoV) or Letter of Recommendation (LoR) from Urban Local Body.

Business VintageNew & Existing units eligible

Min. Annual TurnoverTurnover proportionate

Processing FeeNil (100% statutory fee waiver)

Prepayment TermsNo prepayment penalty; early repayment unlocks immediate 2nd tranche of ₹20,000

How to Apply (3 Verified Paths)

💼Path 1: Current Account Portal

Apply via PM SVANidhi mobile app or ULB help desk.

🌐Path 2: Official FinTech / Govt Portal

Apply at pmsvanidhi.mohua.gov.in using Aadhaar-linked mobile number.

🏢Path 3: SME Banking Center Walk-In

Visit nearest commercial bank, Common Service Centre (CSC), or Municipality office.

Eligo does not collect business loan applications or financial data. Apply directly on the verified official domain:

Visit Official Portal↗

Documents Required Checklist

Aadhaar Card, Vending Certificate / ID card or Letter of Recommendation (LoR) from Town Vending Committee (TVC), Bank passbook.

Frequently Asked Questions

What is the interest subsidy under PM SVANidhi?

Beneficiaries receive an interest subsidy of 7% per annum credited directly into their bank accounts on a quarterly basis.

What cashback is offered for digital transactions?

Vendors earn up to ₹100 per month (₹1,200 annually) as direct cashback for accepting merchant digital UPI payments.

Can a vendor get a second loan after repaying ₹10,000?

Yes. Timely repayment of the 1st tranche automatically makes the vendor eligible for the 2nd tranche of ₹20,000.

What if a vendor does not have a vending ID card?

Vendors without identity cards can obtain a Letter of Recommendation (LoR) from their Urban Local Body / Town Vending Committee.