11:15 AM IST – On 23 January 2026, Prime Minister Narendra Modi launched the UPI-linked PM SVANidhi Credit Card in Thiruvananthapuram, Kerala. It is giving a major digital boost to the government’s PM SVANidhi scheme for street vendors.
As per the PIB Press release, the launch comes as an upgrade to the original PM SVANidhi programme started in June 2020. This scheme, which provided collateral-free working capital loans to street vendors affected during the Covid-19 period. As of December 2025, the data says, the PM SVANidhi scheme has enabled over 50 lakh street vendors to receive benefits, with more than 65.75 lakh total loans disbursed.
What is the PM SVANidhi Credit Card?
The SVANidhi Credit Card is a RuPay credit card linked with UPI. It is specially designed for street vendors already registered under the PM SVANidhi scheme.
Unlike traditional loans, this card provides a revolving credit facility, meaning vendors can use, repay, and reuse the credit multiple times within a fixed limit.
In simple terms, it works like a small business credit card made for vendors selling vegetables, fruits, tea, clothes, street food, and daily-use items. Any urban street vendor recognised under PM SVANidhi. such as vending on roads, footpaths, markets, or public places — is eligible.
How does this credit card work?
Once issued, the card is connected to UPI apps. Vendors can:
- Pay by scanning QR codes
- Make digital payments to suppliers
- Use the credit limit directly through UPI
Example: If a vendor has a ₹30,000 credit limit and uses ₹5,000 to buy raw material, only ₹5,000 gets billed. After repayment, the same amount becomes available again.
This removes the need to take fresh loans for small, daily expenses.
Credit limit, charges
- Maximum credit limit: Up to ₹30,000
- Joining fee: ₹0
- Annual fee: ₹0 (lifetime free)
- Interest: Comes with an interest-free period if payment is made on time
- Collateral: Not required
Late payment charges apply only if dues are delayed, similar to regular credit cards, but limits are kept vendor-friendly.
Who is eligible for the SVANidhi Credit Card?
Not everyone can apply directly. The eligibility is clearly linked to the PM SVANidhi scheme.
You are eligible if:
- You are a registered PM SVANidhi beneficiary
- Successfully repaid at least the first and second loan tranches
- You have a valid Aadhaar, PAN, and a bank account
Vendors who have shown regular repayment behaviour are given priority. There is no need for collateral and no complex paperwork like traditional business loans.
In most cases, vendors who have completed or are close to completing their second loan cycle are considered eligible.
How is this different from PM SVANidhi loans?
| PM SVANidhi Loan | SVANidhi Credit Card |
|---|---|
| One-time loan | Reusable credit |
| Fixed repayment schedule | Flexible repayment |
| Mostly cash-based | Fully UPI-based |
| Loan closes after repayment | Credit continues |
The PM SVANidhi Loan helped vendors restart businesses. The credit card helps them run daily operations smoothly.
Why this move matters
Street vendors are a key part of daily life in Indian cities. From vegetable sellers to tea stalls, over 5 crore people earn their living on the streets. But when money is needed, many of them still turn to local lenders, who charge heavy interest, sometimes ₹3 to ₹10 per ₹100 per month.
The new UPI-linked credit card under the PM SVANidhi scheme brings a safer option. Unlike other normal city lenders, most PSU banks offer lower interest rates and clear rules, such as BOB Bank, Central Bank, and Indian Bank. Vendors can use the card for digital payments, pay suppliers, and manage daily expenses without keeping cash.
Another big change is credit history. Moneylenders never record repayments, but banks do. Regular use of this card can help vendors qualify for higher loans in the future and better credit history, something that was previously out of reach.
Before this, PM SVANidhi focused only on small working capital loans. But, by this card, the scheme now supports long-term financial growth, not just short-term help. For vendors, this means fewer debt traps and a direct link to the formal banking system. in real world, vendor does not have proper income proof and long credit history to take a private big credit cards sometimes, this can really helpful.
