PM SVANidhi, the micro-credit scheme by the Modi government, for micro or nano entrepreneurs such as street vendors has enabled disbursement of 11,80,589 loan applications involving Rs 1,160 crore, according to the data available on the scheme’s website. The scheme has already received over 30.68 lakh loan applications out of which more than 16.52 lakh were sanctioned.
Among lender categories including public and private banks, regional rural banks, microfinance institutions (MFIs), state and urban co-operative banks, small finance and district co-operative banks, and more, public banks have disbursed the majority of applications.
While 10.86 lakh applications were disbursed by public banks, 57,664 applications were disbursed by the regional rural banks. MFIs disbursed 17,214 applications and private banks disbursed 13,082 applications so far. Among the top 10 lending institutions were State Bank of India with 3,26,823 disbursed applications followed by 1.58 lakh by Union Bank of India, 1.31 lakh by Bank of Baroda, 1.05 lakh by Bank of India, 89,437 by Punjab National Bank, etc.
The scheme was launched in June 2020 to provide collateral-free working capital credit up to Rs 10,000 of one year to around 50 lakh street vendors in India including vendors and hawkers selling fruits, vegetables, tea, footwear, local snacks, books, artisan products apart from cobblers, cigarette shop owners, tailors, and more through the lending process that began on July 2, 2020.
The average time taken to sanction a loan application are 26 days. A significant 46 per cent of applicants have been involved in selling fruits and vegetables followed by 21 per cent in fast food and food items, 13 per cent in cloth and handloom items.
PM SVANdhi offers an interest subsidy at 7 per cent per annum as incentives to borrowers for making regular loan repayment while it also has a provision of up to Rs 100 per month in cash backs on undertaking prescribed digital transactions. The vendors could also be eligible for the enhanced limit in their next cycle of the loan if the payment is timely or if they make early repayment.