PM Modi Launches SVANidhi Credit Card to Empower Street Vendors

Prime Minister Narendra Modi unveiled the PM SVANidhi Credit Card, a pioneering initiative under the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme, aimed at strengthening financial inclusion and supporting the livelihoods of India’s street vendors. The launch in Kerala coincided with other developmental initiatives, including the flagging off of three Amrit Bharat Express trains, highlighting the government’s broader commitment to economic growth and social empowerment.

UPI-linked PM SVANidhi Credit Card launched to boost financial inclusion and empower street vendors. | Firstpost

A Revolutionary Step for Financial Inclusion

The SVANidhi Credit Card is a UPI-linked, RuPay-based revolving credit facility designed specifically for street vendors who have successfully repaid their second tranche of loans under the PM SVANidhi scheme. Traditionally, street vendors have had limited access to formal credit systems and often relied on informal moneylenders. The introduction of this credit card ensures instant, interest-free access to funds, allowing vendors to manage daily business operations, invest in inventory, and meet personal financial needs. By integrating the card with digital payment systems, the government is encouraging cashless transactions and fostering financial literacy among micro-entrepreneurs.

At the launch event, Prime Minister Modi personally distributed SVANidhi loans to approximately one lakh beneficiaries, marking a symbolic and practical commitment to empowering India’s informal sector. The initiative reflects a broader strategy to integrate millions of small vendors into the formal financial ecosystem.

Functionality and Features of the SVANidhi Credit Card

The newly launched credit card is designed to provide flexible working capital solutions. Vendors can access the funds repeatedly as the credit is repaid, creating a revolving cycle of support that encourages timely repayment and responsible financial behavior. In addition, the card is linked to UPI, enabling seamless digital payments through mobile apps and point-of-sale devices. To further promote digital adoption, beneficiaries receive cashback incentives on transactions, which helps cultivate a habit of cashless payments and builds a formal financial history for these entrepreneurs.

The card is intended not only as a tool for credit but also as a mechanism for economic empowerment. By facilitating access to formal banking systems, it reduces the reliance on informal lending, which often comes with high-interest rates and unfavorable terms. This ensures that vendors can grow their businesses sustainably and participate more fully in the formal economy.

Revamped PM SVANidhi Scheme: A Broader Framework

The PM SVANidhi scheme, launched in June 2020 as a response to the COVID-19 pandemic, has been instrumental in providing collateral-free working capital loans to street vendors across India. In August 2025, the Union Cabinet approved an extension of the scheme until March 2030, along with a total outlay of ₹7,332 crore. The revised framework not only expanded loan limits but also introduced the SVANidhi Credit Card as an innovative financial instrument to further support vendors’ growth.

Under the updated structure, first-time loans of up to ₹15,000 are available, followed by second-tranche loans of ₹25,000, and third-tranche loans of ₹50,000, contingent on timely repayment. The scheme also offers annual cashback incentives of up to ₹1,200 to encourage digital payments, thereby helping vendors build formal credit records while promoting a shift toward a cashless economy.

Economic and Social Impact

The launch of the SVANidhi Credit Card represents a significant milestone in India’s efforts to empower the informal sector. By linking formal credit with digital financial infrastructure, the initiative ensures that street vendors gain access to affordable and convenient financial tools, thereby reducing dependence on high-interest informal loans. This not only strengthens their economic resilience but also contributes to broader urban economic growth by formalizing small-scale enterprise activity.

Economists and officials note that initiatives like the SVANidhi Credit Card help cultivate a culture of financial discipline and digital literacy among micro-entrepreneurs. Over time, the scheme is expected to enhance vendors’ purchasing power, facilitate business expansion, and generate a more inclusive urban economy.

The MGMM Outlook

Prime Minister Narendra Modi’s launch of the PM SVANidhi Credit Card represents a transformative step in supporting India’s street vendors by bridging the gap between informal livelihoods and formal financial systems. Designed as a UPI-linked, RuPay-based revolving credit facility, the card provides vendors with instant, interest-free access to working capital, enabling them to manage daily operations, invest in inventory, and meet personal financial needs without relying on high-interest informal lenders. By integrating digital payment systems and offering cashback incentives, the initiative not only promotes cashless transactions but also encourages financial literacy and responsible borrowing among micro-entrepreneurs, fostering long-term economic resilience.

This initiative is part of a broader expansion of the PM SVANidhi scheme, which has been providing collateral-free loans to street vendors since 2020 and has now been extended until 2030 with enhanced loan limits. The introduction of the credit card strengthens the scheme’s framework by creating a revolving credit cycle that rewards timely repayment and builds formal financial histories. Beyond supporting individual livelihoods, this approach helps formalize India’s informal economy, enhances purchasing power, and cultivates a digitally empowered, financially disciplined network of small-scale entrepreneurs, contributing to sustainable urban economic growth.

(Sources: Firstpost, Moneycontrol, India Today)