SVANidhi Card Launched by PM Modi: A New Credit Lifeline for Street Vendors

On January 23, 2026, Prime Minister Narendra Modi launched four new train services for Kerala from Thiruvananthapuram and advanced a significant urban livelihood initiative by introducing the PM SVANidhi Credit Card. The credit card represented the next phase of financial inclusion for street vendors nationwide, while the rail announcements concentrated on connectivity.

The launch is part of the reorganised Prime Minister Street Vendor's Atma Nirbhar Nidhi (PM SVANidhi) program, which was first introduced in June 2020 to assist vendors in restarting businesses impacted by the COVID-19 pandemic. Vendors are said to have received

"A sense of identity and formal recognition for their contribution to the economy," as stated in the statement.

Because they provide reasonably priced goods and services near residential areas, street vendors are essential to urban life. However, it stated that many people continue to operate outside of formal systems because of "lack of recognition, limited access to formal credit, low levels of education and skills," as well as weak ties to welfare programs. Through digital access and structured credit, the SVANidhi framework aims to close these gaps.

The scheme's extension and restructuring were approved by the Union Cabinet in August 2025. With a total outlay of Rs 7,332 crore, the lending period was extended until March 31, 2030. 1.15 crore vendors, including 50 lakh new beneficiaries, are expected to gain from the updated version. One lakh recipients, including State street vendors, received SVANidhi loans from the Prime Minister during the Kerala event.

A RuPay credit card linked to UPI, the SVANidhi Credit Card was introduced as part of the reorganised plan. It is intended to assist vendors in managing their daily liquidity requirements while promoting digital payments as an interest-free, revolving credit facility. The modified loan structure makes provisions for a maximum amount of Rs 15,000 in the first tranche, Rs 25,000 in the second tranche, and Rs 50,000 in the third.

The initiative is providing cashback with the following conditions:

“Cashback upto Rs 1,200 on regular sales with a maximum of Rs 100 per month.”

The scheme seeks the linkages of these vendors to welfare schemes, financial literacy, and skill-building initiatives, too. In terms of the implementation of the scheme, the initiative is taken by the Ministry of Housing and Urban Affairs and the Ministry of Financial Services together.

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