The government’s micro-credit scheme PM SVANidhi for informal micro enterprises has disbursed Rs 12,098 crore across 88 lakh loan applications so far, according to the official data. The scheme, launched in June 2020 for street vendors to provide credit up to Rs 50,000, has received 1.12 crore applications, of which 92.18 lakh involving Rs 12,739 crore have been sanctioned so far.
Extended from March 2022 to December 2024, the scheme offers up to Rs 50,000 in the third tranche on timely repayment of up to Rs 20,000 loan in the second tranche. Similarly, the eligibility for the second tranche is based on the timely repayment of up to Rs 10,000 in the first tranche. The first tranche is repayable in 12 monthly instalments. For the second tranche, the minimum repayment period is six months and a maximum of 18 months to be eligible for the third tranche.
According to the available data on the scheme’s portal, the top lenders under the scheme so far have been the State Bank of India having disbursed 28.17 lakh applications followed by 9.16 lakh applications disbursed by Bank of Baroda, 9.04 lakh applications by Union Bank of India, and 6.78 lakh applications by Punjab National Bank.
Out of the total applications disbursed, 65.4 lakh were disbursed with first term loan of Rs 10,000 while 19.1 lakh were disbursed with second term loan of Rs 20,000 and only 3.4 lakh were disbursed with third term loan of Rs 50,000.
Importantly, vendors repaying credit on time are eligible for a 7 per cent interest subsidy for all loan tranches paid on a quarterly or half-yearly basis for standard accounts (accounts which are not non-performing) on the claim dates.
Moreover, the scheme encourages digital transactions with a monthly cashback in the range of Rs 50 – Rs 100. For 50 eligible transactions, Rs 50 cashback is provided and for the next 50 eligible transactions, Rs 25 cashback is offered. For the following 100 eligible transactions, the cashback remains Rs 25.
