In News: The Prime Minister launched the PM SVANidhi Credit Card to further strengthen financial inclusion of street vendors.
PM SVANidhi Credit Card
Objective
- To provide formal, cashless, and revolving working capital to street vendors.
- To integrate street vendors into the digital and formal financial ecosystem.
Key Features
- Eligibility:
- Street vendors who have fully repaid the 2nd tranche loan under PM SVANidhi.
- Must be eligible for the 3rd tranche.
- Credit Limit: ₹30,000
- Card Type: RuPay retail (personal) credit card
- Credit Nature: Revolving credit facility (amount can be reused after repayment).
- Usage:
- Purchase of raw materials, daily business expenses
- Digital payments and cash withdrawals (as per bank norms)
Significance
- Reduces dependence on informal moneylenders.
- Encourages digital transactions and credit discipline.
- Builds credit history for small informal workers.
- Supports Atma Nirbhar Bharat through self-employment.
PM SVANidhi Scheme
Overview
- Launched: 2020
- Type: Central Sector Scheme
- Purpose:
- To provide collateral-free working capital loans to street vendors impacted by COVID-19.
- To help vendors restart their businesses and stabilize incomes.
Loan Structure
- 1st Tranche: ₹10,000
- 2nd Tranche: ₹20,000 (on timely repayment)
- 3rd Tranche: ₹50,000
- Interest Subsidy: 7% (credited directly to bank accounts on timely repayment)
Beneficiaries
- Street vendors operating in:
- Urban areas
- Peri-urban areas
- Municipal corporations, municipalities, and nagar panchayats
Implementation
- Nodal Ministries:
- Ministry of Housing & Urban Affairs (MoHUA)
- Department of Financial Services (DFS)
- Implemented through Scheduled Commercial Banks, RRBs, Small Finance Banks, and MFIs.
IAS-2026 - OPTIONAL / GEOGRAPHY / PUBLIC ADMINISTRATION / SOCIOLOGY / ANTHROPOLOGY / ORIENTATION ON 03 & 04-10-2025 
