PM SVANidhi yojana - Centre’s micro-credit - for micro or nano entrepreneurs like street vendors has disbursed 84% of loan applications sanctioned untill now. According to government data, 20,25,473 loan applications that involved Rs 2,004.86 crore have been distributed as of 18 April 2021, out of total 24 lakh sanctioned applications involving Rs 2,393.87 crore.
PM SVANidhi yojana that was launched on 1 June 2020 by the Ministry of Housing and Urban Affairs has received more than 41.5 lakh applications. The scheme offers collateral-free working capital credit up to Rs 10,000 via banks for a tenure of 1 year to street vendors in the country including hawkers selling vegetables, fruits, tea, snacks, books, cigarette shop owners, tailors, artisan products apart from cobblers and more through the lending process that started on 2nd July 2020. The scheme aimed at supporting around 50 lakh street vendors hit by lockdown last year.
So far, the biggest beneficiaries of PM SVANidhi yojana have been fruits and vegetable vendors with 45% share in the overall loans disbursed followed by 21% disbursed to food items vendors, 13% to vendors of cloth & handloom items, 5% to beauty and fashion accessories vendors.
Country’s largest bank, State Bank of India is the top lender with disbursal of over 6 lakh loans. Union Bank of India, Bank of Baroda, Bank of India & Canara Bank were other lenders with 2.36 lakh, 2.03 lakh, 1.61 lakh & 1.51 lakh loans disbursed respectively.
PM SVANidhi Yojana Benefits
Vendors are eligible for a 7% interest subsidy for early or timely repayment. In addition, there is also a provision of earning Rs 1,200 pe year in cashback in the scheme. However, street vendors last year had urged the Centre to increase the credit limit by over 2X.
Besides scheduled commercial banks, PM SVANidhi had collaborated with non-banking financial companies & micro-finance institutions for lending to eligible entrepreneurs even as lenders have been provided with “A graded guarantee cover” on a portfolio basis via Credit Guarantee Fund Trust for Micro & Small Enterprises.
It must be noted that SIDBI is the implementation partner of the yojana that will be executed up to March 2022. The Housing & Urban Affairs Ministry had partnered with foodtech firm Swiggy in December 2020 and Zomato in February 2021 to enable street food vendors to access online customer base.
