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Over 27 lakh street vendors avail loans under PM-SVANidhi scheme

Data suggests most of the street vendors -- around 50 percent -- who have received loans so far belong to Uttar Pradesh (2.93 lakh beneficiaries) and Madhya Pradesh (1.53 lakh). SBI tops the chart with 90% loans disbursal 

twitter-logoBusinessToday.In | November 19, 2020 | Updated 10:49 IST
Over 27 lakh street vendors avail loans under PM-SVANidhi scheme
Govt haad announced a Rs 5,000 crore special credit facility for street vendors in May

Within a few months of launch, around 27.34 lakh street vendors have availed loans worth Rs 10,000 each offered under the government's PM Street Vendor's Atma-Nirbahr Nidhi (PM-SVANidhi) scheme. As per the housing and urban affairs ministry, about 7.89 lakh loans worth Rs 773.6 crore have been disbursed already. The Centre has received a total of 14.35 lakh applications under the scheme. As the Centre aims to provide benefit to over 50 lakh street venders, many more are expected to apply for loans under the scheme.

The data suggests most of the street vendors -- around 50 percent -- who have received loans so far belong to Uttar Pradesh (2.93 lakh beneficiaries) and Madhya Pradesh (1.53 lakh), reported Times of India. The State Bank of India tops the chart with around 90 per cent loans disbursed by the state-owned bank alone.

The scheme allows vendors who returned to their home states due to Covid-19 lockdown to avail of loans. As per the government, the loan disbursal process has been made as smooth as possible. Public sector banks have been advised to reach the doorstep of the applicants to ensure venders restart their ventures at the earliest.

Finance Minister Nirmala Sitharaman had announced a Rs 5,000 crore special credit facility for street vendors as part of the economic package on May 15. Under the scheme, the government aims to provide a special credit facility to support nearly 50 lakh street vendors, whose livelihoods have been adversely impacted by COVID-19.

Initially working capital up to Rs 10,000 is provided under the scheme. Those accepting digital payments also receive monetary rewards and credit based on good repayment behaviour. The credit measures for street vendors are part of the government's Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi in May.

Also read: Rs 5,000 crore special credit facility to support 50 lakh street vendors: FM

Also Read: Over Rs 4 lakh crore loan disbursed to 3 crore farmers under PM-KISAN, says FM

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