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

PM SVANidhi - 2nd Tranche Enhanced Working Capital Loan (₹20,000)

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

₹20,000 second-stage loan for street vendors with prompt 1st tranche repayment history.

Connected Central Government Scheme: PM SVANidhi - 2nd Tranche Enhanced Working Capital Loan (₹20,000)View Government Scheme Guidelines →

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

Loan Amount QuantumUp to ₹20,000Based on turnover & project cost

Repayment Tenure18 Months (18 monthly EMIs)With moratorium where applicable

Collateral SecurityNil collateral; guaranteed by CGTMSE

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

Requires complete and satisfactory closure of 1st tranche ₹10,000 loan. Cannot be availed without completing Tranche 1.

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 - 2nd Tranche Enhanced Working Capital Loan (₹20,000)?

Second-tier enhanced working capital facility providing up to ₹20,000 to street vendors who demonstrated financial discipline by fully paying the 1st tranche on or ahead of time.

Key Benefits & Features

Double credit limit (₹20,000); 18 months repayment tenure; 7% interest subsidy; builds substantial credit bureau score for higher bank loans.

Government Subsidy & Credit Guarantee Coverage

7% interest subvention; digital transaction cashback up to ₹1,200/yr

Enterprise Eligibility Criteria

Street vendors who have fully repaid the first tranche of ₹10,000 without adverse defaults.

Business Vintage1+ Years in Operation

Min. Annual TurnoverTurnover proportionate

Processing FeeNil

Prepayment TermsZero prepayment penalty; early repayment unlocks 3rd tranche of ₹50,000

How to Apply (3 Verified Paths)

💼Path 1: Current Account Portal

One-click application on PM SVANidhi portal upon 1st loan closure.

🌐Path 2: Official FinTech / Govt Portal

Apply at pmsvanidhi.mohua.gov.in selecting 2nd tranche upgrade.

🏢Path 3: SME Banking Center Walk-In

Visit lending bank with 1st loan repayment statement.

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, 1st loan account number, Vending certificate / LoR.

Frequently Asked Questions

What is the tenure for 2nd tranche PM SVANidhi?

The repayment tenure is 18 months with equal monthly instalments.

Does the 7% interest subsidy apply to 2nd tranche?

Yes, the 7% interest subsidy continues to be credited on a quarterly basis.

Can a vendor repay early without charges?

Yes, early repayment has zero charges and immediately unlocks eligibility for the 3rd tranche of ₹50,000.

Is digital transaction volume verified?

Active digital UPI usage enhances credit grading and ensures continuous monthly cashback.