Bengaluru:
In a major step toward strengthening the economic foundation of street vendors and small traders, Prime Minister Narendra Modi has unveiled the PM SVANidhi Credit Card, a digital financial tool designed to provide easy, flexible, and interest-free credit. The initiative was officially launched during a high-profile event in Thiruvananthapuram, Kerala, alongside the inauguration of several large infrastructure and development projects.
This new credit card is not just another welfare scheme—it represents a shift toward digital empowerment, ensuring that even the smallest vendors become part of India’s formal financial ecosystem. For millions of street vendors who have never had access to structured credit or banking tools, this card is a game changer.
A Big Leap for Street Vendors and Small Traders
For decades, street vendors across India have relied on informal money lenders who charge high interest rates. Access to bank loans, credit cards, or digital payment tools remained out of reach for most of them. The PM SVANidhi Credit Card aims to change this reality.
The card offers:
- Collateral-free credit
- No interest if repaid on time
- UPI-enabled digital transactions
- Cashback incentives for digital usage
This initiative brings financial dignity and flexibility to vendors selling vegetables, fruits, snacks, tea, clothes, and other daily essentials.
What Is the PM SVANidhi Credit Card?
The PM SVANidhi Credit Card is an extension of the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme, which was launched to support street vendors affected by economic disruptions.
Unlike a traditional loan, this card works as a revolving credit facility, meaning vendors can:
- Use money as needed
- Repay it partially or fully
- Reuse the credit without reapplying
As long as repayments are made on time, the credit line remains active.
Key Features of the PM SVANidhi Credit Card
1. Revolving Credit System
This is not a one-time loan. Vendors can withdraw funds multiple times within the approved limit, making it ideal for daily business needs such as buying raw materials or restocking goods.
2. UPI and Digital Payment Integration
One of the most powerful features of this card is its UPI linkage. Vendors can link the card with:
- PhonePe
- Google Pay
- Paytm
- Other UPI apps
This allows cashless purchases without visiting a bank branch. It also helps vendors build a digital transaction history, which is important for future financial benefits.
3. Interest-Free Credit (On Timely Repayment)
If vendors repay the used amount within the prescribed time, no interest is charged. This makes it one of the most affordable credit options available to informal workers.
4. Monthly Digital Cashback
To encourage digital transactions, the government is offering:
- Up to ₹100 cashback per month
- ₹1,200 cashback per year
This incentive rewards vendors for using UPI and other digital payment methods.
5. Long Validity
Once issued, the PM SVANidhi Credit Card remains valid for five years, offering long-term financial stability.
How Much Credit Can a Vendor Get?
The credit limit increases gradually based on repayment discipline.
Initial Credit Limit
- Vendors receive an initial limit of ₹10,000
Enhanced Credit Limit
- With proper usage and timely repayments, the limit can be increased to ₹30,000
This step-by-step model ensures responsible borrowing while rewarding good financial behavior.
Who Is Eligible for the PM SVANidhi Credit Card?
Not everyone can apply immediately. The scheme is targeted and structured.
Eligibility Criteria:
- The applicant must be a street vendor
- The vendor must already be a beneficiary of the PM SVANidhi loan scheme
- Vendors who have successfully repaid the first two loan tranches (₹10,000 and ₹20,000) are eligible
- Proper repayment history is mandatory
This ensures that credit is extended to vendors who have demonstrated financial discipline.
Why This Scheme Is a Turning Point
Financial Inclusion
Street vendors, who were once excluded from formal banking, now gain access to structured credit and digital finance tools.
Freedom from Moneylenders
With easy access to interest-free credit, vendors no longer need to depend on high-interest private lenders.
Boost to Digital India
The scheme directly supports the Digital India mission by encouraging UPI payments and cashless transactions at the grassroots level.
Business Growth
With reliable access to working capital, vendors can:
- Buy better inventory
- Expand operations
- Improve product quality
- Increase daily income
Special Benefit for Karnataka and Coastal Regions
During the same event, Prime Minister Modi also inaugurated three new Amrit Bharat Express trains, one of which has a direct impact on Karnataka.
Nagarcoil – Mangaluru Junction Amrit Bharat Express
- Connects Tamil Nadu, Kerala, and coastal Karnataka
- Offers affordable, high-speed, modern rail travel
- Improves trade, tourism, and employment opportunities
- Benefits small traders and vendors through better connectivity
This rail project complements the SVANidhi initiative by improving mobility and regional economic integration.
How to Apply for the PM SVANidhi Credit Card
Eligible vendors can apply through multiple channels.
Offline Method:
- Visit the nearest bank branch
- Approach Common Service Centers (CSC)
Online Method:
- Apply through the official PM SVANidhi portal
Documents Required:
- Aadhaar Card
- Proof of PM SVANidhi loan repayment
- Basic identification details
The process is designed to be simple and vendor-friendly.
Important Safety Guidelines for Applicants
Use Only Official Channels
Always apply through the government’s official PM SVANidhi portal, banks, or CSC centers.
Avoid Middlemen
No agent or middleman is authorized to charge money for applications. The process is free.
Beware of Fake Links
Do not click on suspicious WhatsApp or SMS links asking for bank details. The government never requests sensitive information through unofficial channels.
Long-Term Impact of the PM SVANidhi Credit Card
This initiative goes beyond short-term relief. It lays the foundation for:
- Credit history creation
- Access to future loans
- Financial independence
- Economic resilience for urban poor
By merging welfare with technology, the government is redefining how financial support reaches the grassroots.
Final Thoughts
The launch of the PM SVANidhi Credit Card marks a historic shift in India’s approach to financial inclusion. A facility once reserved for salaried individuals and the affluent is now reaching street vendors—the backbone of urban economies.
By combining interest-free credit, digital payments, and cashback incentives, this initiative empowers vendors not just to survive, but to grow. It reflects a vision where development is inclusive, technology-driven, and accessible to all.
As India moves toward a stronger digital economy, schemes like this ensure that no section of society is left behind.
