Prime Minister Narendra Modi announced the launch of PM SVANidhi Credit Cards during an event in Kerala on Friday — highlighting a major shift within the country when it came to financial inclusion. He noted that a facility once available only to the elite was now easily accessible for all stratas of society.
“Previously, only wealthy people had credit cards, but now street vendors also have SVANidhi credit cards.The condition of those who sell goods on the streets and in the lanes was very bad earlier. They had to take even a few hundred rupees at very high interest rates to buy goods,” he said.
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Modi addressed a gathering in Thiruvananthapuram on Friday morning after flagging off three Amrit Bharat trains and launching a slew of development projects. He said 10,000 vendors from Kerala and over 600 from the capital city had received credit cards during the programme.
What is the PM SVANidhi Credit Card?
The Credit card issued under the Scheme will be a RuPay retail (personal) credit card with revolving credit facilities. It is offered offered by public and private sector banks as well as credit card issuers. It will offer vendors greater flexibility to meet day-to-day expenses and adapt to changing business needs.
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“This initiative is designed to benefit vendors who have fully repaid the first two tranches of the loans under the scheme. By adhering to credit discipline, vendors can benefit from interest-free credit for a period of 20 to 50 days, allowing them to enhance liquidity and strengthen their financial planning,” reads an excerpt from the official handbook.
Credit limit, validity and interest rates
The PM SVANidhi credit card has a credit limit of Rs 30,000. The operating limit will initially be fixed at Rs 10,000 — with a gradual increase based on satisfactory usage. The card will be valid for a period of five years from the date of issue. The issuers will offer an interest-free credit period of 20 to 50 days, as per their existing policy. The credit card will also be linked to the UPI ID of the beneficiary to enable simplified payments.
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