Prime Minister Narendra Modi on Friday launched the PM SVANidhi Credit Card, a UPI-linked, interest-free revolving credit facility aimed at strengthening financial inclusion for street vendors, during his visit to Kerala.

As part of the rollout, around one lakh street vendors received PM SVANidhi loans, marking a significant expansion of urban livelihood support in the state.

Addressing the gathering, the PM highlighted the importance of affordable and timely credit in helping street vendors stabilise and expand their businesses. He stated that the new credit card is designed to provide instant liquidity for working capital, while encouraging the adoption of digital payments through the Unified Payments Interface (UPI).

What the PM SVANidhi Credit Card offers

Government officials said the PM SVANidhi Credit Card will function as an interest-free, revolving credit line, enabling beneficiaries to meet daily business needs without turning to informal lenders.

Being UPI-linked, the card simplifies transactions and promotes digital payments, while also helping vendors build a formal credit history, easing access to future banking and financial services.

Evolution of the PM SVANidhi scheme

The credit card represents the next stage of the PM SVANidhi scheme, launched in June 2020 to support street vendors hit by the Covid-19 pandemic. The scheme initially provided collateral-free microloans, along with incentives for timely repayment and digital adoption.

Restructuring, extended timeline and coverage

In August 2025, the Union Cabinet approved a restructuring of the scheme, extending the lending period until March 31, 2030, with a total outlay of ₹7,332 crore.

Under the revised framework, first-time loan limits were raised to ₹15,000, second-time loans to ₹25,000, while the third tranche remains at ₹50,000. Vendors who repay their second loan on time become eligible for the UPI-linked RuPay credit card, along with cashback incentives for digital transactions.

The revamped scheme is expected to benefit around 1.15 crore street vendors, including 50 lakh new beneficiaries, with coverage expanding beyond statutory towns to census towns and semi-urban areas.

Broader development push

The rollout in Kerala coincided with the inauguration of new rail services and infrastructure projects, underscoring the government’s broader focus on regional development alongside urban livelihood reforms.