PM SVANidhi: Modi govt’s loan to street vendors up 700% in 3 months; SBI remains top lender

By: |
December 22, 2020 3:54 PM

Credit and Finance for MSMEs: 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 arrival of vegetables and fruits to Delhi's largest wholesale market at Azadpur has been reduced by half due to the closed borders, said Adil Khan, chairman Agricultural Produce Marketing Committee at Azadpur.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.

Credit and Finance for MSMEs:  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 as of December 22, 2020, according to the data available on the scheme’s website. This is up 762 per cent or 8.62X of 1,36,850 loan applications involving Rs 136.36 crore disbursed as of September 21, 2020. The scheme has already received over 30.68 lakh loan applications out of which more than 16.52 lakh were sanctioned– 217 per cent up from 5,21,304 applications as of September 21. Moreover, the sanctioned amount has also grown Also, the sanctioned amount as of September 21 stood at Rs 1,646.26 crore, up from Rs 518.66 crore during the said period.

Importantly, 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. Moreover, among the top 10 lending institutions were SBI 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.

Also read: Amazon India in 2020: 4,152 sellers crossed Rs 1 crore sales mark; number of crorepati sellers up 29%

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 July 2, 2020. The average days taken to sanction a loan application are 26. 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, and more.

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 there timely or early repayment.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Indian startups attract $10.14 billion in funding in 2020: Report
2President Kovind hails Modi govt’s ‘easy loans’ for small businesses to ‘unleash entrepreneurial spirit’
3India on cusp of start-up explosion boom, dozens of unicorns in offing: Gautam Adani