Govt’s loan to street vendors under SVANidhi scheme shot up 700% in last 3 month

The loan advancements to local vendors under PM SVANidhi scheme has seen a rise of more than 700 per cent in last 3 months, the scheme, launched in June 2020 provides the collateral-free working capital credit up to Rs 10000 of one year to around 50 lakh vendors in the country which include hawkers selling fruits, vegetable, handmade products, books to small shop owners, tailors, cobblers and tea shops.

As per the terms of scheme, an interest subsidy of 7 per cent is offered as incentives to the borrowers in return of making regular loan repayment by them, there is also a provision of providing cash back up to Rs 100 per month if they adopt digital transactions.

According to the data available on the website, as of now disbursement of 11,80,589 loan applications involving Rs 1,160 crore has done under the micro-credit scheme.The scheme has already received over 30.68 lakh loan applications out of which more than 16.52 lakhs were sanctioned– 217 per cent up from 5,21,304 applications as of September 21.

Private banks, regional rural banks, state and urban co-operative banks, small finance and district co-operative banks, and public banks are the primary financial institutions who have hitherto disbursed the loans against the majority of applications.

Cover image by Tripsavvy