PM Svanidhi credit card: There are several central schemes under which the government provides credit cards to people. One such scheme is the Pradhan Mantri Street Vendor Atmanirbhar Nidhi (PM Svanidhi).
In last year’s Union Budget, the government had announced the provision of UPI-linked RuPay credit cards under this scheme. Its limit has been fixed at Rs 30,000. With the introduction of UPI-linked RuPay credit cards, street vendors will be able to avail instant loans to meet any emergency business and personal needs. Apart from this, street vendors can avail cashback incentives of up to Rs 1,600 on retail and wholesale transactions.
About the scheme
The Pradhan Mantri Street Vendor Atmanirbhar Nidhi Yojana was launched during the COVID-19 pandemic. Under this scheme, loans are provided to street vendors to enable them to continue their work. This scheme is valid until March 31, 2030. Previously, the first installment under the scheme was ₹10,000, but in August last year, the government increased this amount to ₹15,000. Similarly, the second installment, which used to be ₹20,000, has been increased to ₹25,000. The third installment remains the same at ₹50,000.
What changed in August?
Last August, the government announced a total outlay of ₹7,332 crore (US$1.7 billion). The restructured scheme aims to benefit 11.5 million beneficiaries, including 5 million new beneficiaries. The Ministry of Housing and Urban Affairs (MoHUA) and the Department of Financial Services (DFS) will jointly implement the scheme. DFS’s role will be to facilitate access to loans and credit cards through banks/financial institutions and their ground-level officials.
Key features of the restructured scheme include increased loan amounts in the first and second installments, the provision of a UPI-linked RuPay credit card for beneficiaries repaying the second loan, and digital cashback incentives for retail and wholesale transactions. The scope of the scheme is being expanded in a phased manner to include census towns and semi-urban areas, etc.
