PM SVANidhi Credit Card Launched: Loan Limits, Cashback, Interest - Here's All You Must Know

Prime Minister Narendra Modi on Friday launched the PM SVANidhi Credit Card, a new interest-free, UPI-linked revolving credit facility for street vendors, during his visit to Kerala. At the event, around one lakh street vendors also received PM SVANidhi loans, marking a major step in the government’s push for financial inclusion and urban livelihood support in the state.

The occasion featured several announcements, including the inauguration of new train services and infrastructure projects aimed at improving rail connectivity and supporting local economies.

What the PM SVANidhi Credit Card Offers?

Designed to expand access to formal credit for street vendors, the PM SVANidhi Credit Card provides instant, interest-free funds for working capital and other business needs. Being linked with the Unified Payments Interface (UPI), it encourages vendors to adopt digital payments and simplifies daily transactions.

Government officials highlighted that the card will help vendors establish a formal credit history, making it easier for them to access future financial services from banks and other lenders.

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The Journey of the PM SVANidhi Scheme

The PM SVANidhi Credit Card represents the next stage of the PM SVANidhi programme, which began in June 2020 to support street vendors affected by the COVID-19 pandemic. Initially, the scheme offered collateral-free micro-loans to help vendors restart their businesses, with rewards for timely repayment and adoption of digital payments.

In August 2025, the government extended the scheme until March 31, 2030, expanded loan limits, and formally introduced the UPI-linked RuPay credit card for eligible participants. Key updates include:

• First-time loan limits increased to ₹15,000; second-time loans up to ₹25,000.
• Vendors with timely repayment of their second loan qualify for the credit card.
• Cashback incentives promote digital transactions.

The revised scheme is expected to reach approximately 1.15 crore street vendors across India.

Significance of the Launch

Street vendors, who largely operate in India’s informal economy, have traditionally had limited access to formal banking credit. The introduction of an interest-free, revolving credit facility tied to digital payments is anticipated to reduce dependence on informal lenders, strengthen business resilience, and promote financial stability among vendors.

In Kerala, the PM’s announcement coincides with other initiatives, including the launch of new Amrit Bharat Express services and innovation and healthcare projects, underscoring the government’s focus on regional development during the Prime Minister’s tour.

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