The government is offering UPI-linked credit cards; find out who is eligible to apply and how you can avail of the benefits..

Nowadays, the government implements various schemes; however, not everyone is eligible for every scheme. These government initiatives are designed for those in need, helping them meet their daily requirements. In this context, the central government runs the 'PM SVANidhi Yojana' to provide financial support to small business owners and street vendors.

Under this scheme, eligible street vendors are now being provided with a RuPay credit card that has a credit limit of up to ₹30,000. A key feature is that this card can be linked to UPI, allowing vendors to make digital payments using their credit limit—even without cash. Depending on the bank's terms and conditions, the card also offers an interest-free credit period ranging from 20 to 50 days.

Funds provided in three installments

The PM SVANidhi Yojana was launched during the COVID-19 pandemic to support small-scale street vendors. Under this scheme, beneficiaries can receive loans in three phases, without the need for any collateral (guarantee).

The first installment offers a loan of up to ₹15,000.
The second installment provides a loan of up to ₹25,000.
The third installment offers the facility to obtain a loan of up to ₹50,000.

Additionally, eligible street vendors are issued a PM SVANidhi credit card with a maximum credit limit of ₹30,000. Initially, the usage limit is set at ₹10,000; however, through responsible use and timely repayments, this limit can be gradually increased up to ₹30,000.

Payments via UPI; five-year validity
The most significant feature of this credit card is that it can be linked to the beneficiary's UPI ID. This enables vendors to make UPI payments using their assigned credit limit. Depending on the policy of the card-issuing bank, an interest-free credit period of 20 to 50 days will be provided.

There are no joining, enrollment, activation, or annual renewal charges for this card; it is a lifetime-free credit card. The card will remain valid for five years from the date of issuance. However, if payments are not made on time, interest and other charges may be applied to the outstanding amount in accordance with the bank's policies. No late payment penalty will be charged on outstanding balances of up to ₹500.

Who is eligible to apply?

Applicants for the PM SVANidhi credit card must be between 21 and 65 years of age. Furthermore, the applicant must not have any account classified as an NPA (Non-Performing Asset) or written off by any bank or financial institution. Notably, there is no mandatory minimum credit score requirement for this card.

Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.