Interest-free revolving credit facility benefits crores of daily vendors
Prime Minister Narendra Modi marked a significant milestone for India's informal economy on Friday by launching the PM SVANidhi Credit Card. While the event in Kerala also saw the flagging off of four new train services, the spotlight remained firmly on this major financial inclusion initiative designed to bring dignity and capital to street vendors across the nation, including thousands in Odisha.
Empowering the Informal Economy
Street vendors often struggle with a lack of identity and restricted access to formal banking. This new initiative seeks to change that narrative. According to the Prime Minister, this credit card is not just a financial tool but a symbol of formal recognition for the immense contribution vendors make to the urban economy.
This launch is part of the recently restructured Prime Minister Street Vendor’s Atma Nirbhar Nidhi (PM SVANidhi) scheme. Originally started during the pandemic to help businesses restart, the scheme has now been extended until March 31, 2030, with a massive outlay of Rs 7,332 crore.
What is the PM SVANidhi Credit Card?
Designed as a UPI-linked RuPay instrument, the PM SVANidhi Credit Card offers a revolving credit facility. This means vendors can access funds for their daily business needs without the burden of interest. It is specifically available to beneficiaries who have successfully repaid their second tranche loan on time.
Officials state that this integration will allow vendors to meet emergent personal and business requirements instantly. By linking it to UPI, the government also aims to push digital literacy among small business owners.
Loan Limits and Benefits
Under the revised guidelines approved by the Union Cabinet in August 2025, the loan structure has been enhanced to provide better liquidity.
To encourage digital transactions, the scheme also offers cashback incentives of up to Rs 1,200 annually (maximum Rs 100 per month) on regular sales.
During the launch event, Prime Minister Modi disbursed loans to one lakh beneficiaries, reinforcing the government's commitment to supporting 1.15 crore vendors across India. This initiative ensures that small business owners in cities like Bhubaneswar and Cuttack can now access the same digital financial tools as larger enterprises.
