Street vendors have high refund rate under PM SVANidhi: Hardeep Singh Puri


Street vendors have a high repayment rate for loans taken out under PM Street Vendor’s Atmanirbhar Nidhi (PM SVANidhi) scheme, with NPAs in the range of 12-13% against total disbursement of around ₹3,600 crore. The vendors are now applying for a second tranche of loans – of ₹20,000 – for the expansion of the business, said Union Housing and Urban Affairs Minister Hardeep Singh Puri.

According to a ministry official, almost 12 million people have repaid their loans and 300,000 are in “various stages of repayment”. Meanwhile, at least 50,000 applications have been received for “the other tranches”, officials said. Activity area. Repayments are encouraged by an interest subsidy of 7%.

Refunds on time

The scheme is also pushing the adoption of digital transactions through cash back rewards of up to ₹100 per month, according to government data. To date, nearly 13 lakh providers are digitally active and around 19 million digital transactions have been completed. The cumulative cashback claimed is around ₹12 crore, according to data from the ministry.

“The NPAs for the program are in the 12-13% range, and that’s a very manageable number. In fact, what is encouraging is that many people are now asking for the second installment and some for the third, which means that repayments have been much better and higher. Most of the people who took these loans repay the IMEs on time,” Puri said Thursday, while announcing the launch of “SVANidhi Mahotsav,” a cultural festival to celebrate the success of the program.

Loans without collateral

The scheme allows street vendors to take out loans in the range of ₹10,000 for a period of one year, and only after repayment are they eligible to apply for a loan of up to ₹20,000. When reimbursing this second installment, sellers can opt for a third installment of ₹50,000. These loans are unsecured.

There are 53,66,119 street vendors registered under this central program while so far 36,60,313 applications have been sanctioned by banks. Disbursements were granted to 33 23,650 candidates. The average age of claimants is 41, with Uttar Pradesh and Madhya Pradesh having the highest number of recipients. West Bengal and Kerala – two states not ruled by the BJP – are at the bottom of the list.

State Bank of India and Union Bank of India are among the PSBs most exposed to the scheme, according to ministry data.

Published on

July 07, 2022


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