PM Svanidhi credit card: The government has rolled out several central schemes that offer credit cards to citizens. One of these is the Pradhan Mantri Street Vendor Atmanirbhar Nidhi (PM Svanidhi). In the Union Budget from last year, it was announced that UPI-linked RuPay credit cards would be available under this scheme, with a limit set at Rs 30,000. This means street vendors can access instant loans for any urgent business or personal needs. Additionally, they can earn cashback rewards of up to Rs 1,600 on both retail and wholesale purchases.
The Pradhan Mantri Street Vendor Atmanirbhar Nidhi Yojana was introduced during the COVID-19 pandemic to support street vendors in continuing their operations. This initiative is valid until March 31, 2030. Initially, the first loan installment was Rs 10,000, but it was raised to Rs 15,000 in August last year. Likewise, the second installment increased from Rs 20,000 to Rs 25,000, while the third installment remains unchanged at Rs 50,000.
What changed in August?
Last August, the government revealed a total budget of Rs 7,332 crore (around US$1.7 billion) for the scheme. The revamped initiative aims to assist 11.5 million beneficiaries, including 5 million new ones. The Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS) will work together to implement this scheme. The DFS will help facilitate access to loans and credit cards through banks and financial institutions, along with their local officials.
Key features of the revamped scheme include higher loan amounts for the first and second installments, the introduction of UPI-linked RuPay credit cards for those repaying the second loan, and digital cashback incentives for retail and wholesale transactions. The scheme’s reach is being gradually expanded to cover census towns and semi-urban areas, among others.