In a significant move to empower street vendors and hawkers across India, Prime Minister Narendra Modi unveiled the PM SVANidhi Credit Card scheme on Friday. This initiative provides street vendors with access to credit cards featuring a maximum limit of Rs 30,000, marking a transformative step in financial inclusion for small-scale entrepreneurs.
Key Features of the PM SVANidhi Credit Card Scheme
The newly launched credit card scheme offers short-term loans that are almost interest-free, providing much-needed financial support to street vendors. This facility complements the existing PM SVANidhi subsidised loan program, which was introduced during the COVID-19 pandemic to assist street vendors in sustaining their livelihoods.
Eligibility Criteria for Street Vendors
According to official guidelines, street vendors who have successfully repaid their second tranche of loans and qualify for the third tranche under the PM SVANidhi scheme are eligible to apply for the credit card. Additionally, vendors who have already availed the third tranche loan—whether the loan is currently active or has been repaid—can also apply for the credit card, ensuring broad accessibility.
PM Modi's Vision for Financial Inclusion
Launching the credit card scheme in Kerala, Prime Minister Modi emphasized the democratization of financial tools. "Earlier, only the rich used to have credit cards, now street vendors will also have the SVANidhi Credit Card," he stated, highlighting the government's commitment to bridging economic disparities and fostering entrepreneurship at the grassroots level.
Impact on Street Vendors and Small Businesses
The PM SVANidhi Credit Card is expected to revolutionize the way street vendors manage their finances, offering them:
- Enhanced access to credit for business expansion and daily operations
- Reduced financial burden through near-zero interest rates
- Greater financial stability and independence
- Opportunities to build credit history and access formal banking services
This initiative aligns with the government's broader efforts to support micro-entrepreneurs and strengthen the informal economy, contributing to sustainable economic growth and poverty alleviation.
