The central government is offering another major benefit to street vendors under the Pradhan Mantri SVANidhi (PM SVANidhi) scheme.
Eligible beneficiaries can now get a RuPay retail (personal) credit card, making it easier to manage daily business expenses and access extra funds whenever required.
The biggest advantage is that users can enjoy 20 to 50 days of interest-free credit, provided they pay their dues on time.
Who Can Apply?
This facility is available only to street vendors who have successfully repaid the second loan under the PM SVANidhi scheme and are eligible for the third loan, or those who have already taken the third loan.
Street vendors who have also repaid their third-phase loan can apply for this credit card.
Under the PM SVANidhi scheme, vendors receive collateral-free loans in three stages:
First loan: ₹15,000
Second loan: ₹25,000
Third loan: ₹50,000
The government also encourages digital payments by offering cashback of up to ₹1,600 on eligible retail and wholesale digital transactions.
Documents Required
Applicants need to submit the following documents:
Aadhaar Card
PAN Card
Vending Certificate (COVID), Letter of Recommendation (LOR), or Identity Card issued by the Urban Local Body (ULB) or Block Office
Savings Bank Account details
Current address proof (if the Aadhaar address is not valid)
Eligibility Conditions
To apply for the RuPay credit card under PM SVANidhi, applicants must:
Be between 21 and 65 years of age
Have no NPA (Non-Performing Asset) or loan default with any bank or financial institution
Meet the PM SVANidhi loan eligibility criteria
The government has also clarified that there is no minimum credit score requirement for this facility.
How the Scheme Has Helped Street Vendors
The PM SVANidhi scheme is jointly implemented by the Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS).
According to the government, by March this year, around 95% of beneficiaries had received their first-ever formal institutional loan through the PM SVANidhi scheme.
In addition, nearly 30% of beneficiaries later secured extra loans beyond the PM SVANidhi loan. The scheme has also improved earnings, with beneficiaries reporting an average annual income growth of around 20%.
