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Tuesday, October 17, 2023

Get an interest free loan Start a business with the help of this scheme @PM Svanidhi Yojana Loan

What is PM SVANidhi Scheme?

PM SVANidhi, or the Prime Minister Street Vendor’s AtmaNirbhar Nidhi, is a central government scheme that was launched in June 2020. The scheme aims to provide micro-credit facilities to street vendors that were affected because of the Coronavirus pandemic. The scheme provides collateral-free working capital loans to the beneficiaries. 

Objectives of the PM SVANidhi Scheme

The main objective of the PM SVANidhi scheme is to help 50 Lakh vendors across India. The economic condition of these vendors was affected due to the lockdown imposed during the Coronavirus pandemic. The scheme aims to achieve the following objectives:
Help the street vendors find economic stability by providing unsecured working capital loans of up to ₹10,000.

To incentivise regular loan repayments as per the schedule.

To reward vendors with cashback if they process the payments digitally

Features of the PM SVANidhi Yojana

Some of the salient features of the Pradhan Mantri SVANidhi Yojana are as follows: 

Loan Amount: This central government scheme provides handholding support to street vendors in the form of unsecured loans of up to ₹10,000. 

Repayment Tenure: The beneficiaries of the scheme can repay the loan amount over a period of 12 months.

Prepayment Benefit: The scheme also provides a subsidy of 7% on the interest amount if you repay the loan amount before the scheduled tenure. The subsidy is directly transferred to their bank account through Direct Benefit Transfer.


Collateral-Free Loan: These loans are unsecured, which means that the beneficiaries do not have to put up an asset as collateral.

Incentive for Digital Transactions: In order to promote digital transactions, the MoUHA (The Ministry of Urban and Housing Affairs) is providing cashback if you repay the loan digitally.

PM SVANidhi Loan Interest Rate

The PM SVANidhi interest rate remains similar to the interest rates of the loans provided by the following entities: 

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