PM SVANidhi loans: 88% street vendors regularly repaying PM SVANidhi loans

About 12% of the loans disbursed to street vendors under PM SVANidhi scheme have been reported as non-performing assets (NPAs).

The micro credit scheme, unveiled on July 2, 2020 to provide easy loans to street vendors in the wake of Covid-19, gave out the first tranche of loan of Rs 10,000 to street vendors, followed by Rs 20,000 as second tranche and Rs 50,000 as third tranche.

According to state-wise data provided by the ministry of housing and urban affairs, 30,20,566 first loans have been disbursed and 2,99,179 second loans. According to the ministry, the first loans have a repayment period of one year and are paid through EMIs (easy monthly installments). The loans have been disbursed over a period of two years and will have different dates for completion of repayment.

The ministry also clarified that out of 30.24 lakhs disbursed only 12% loans have been reported as NPAs which means that 88% street vendors are regularly repaying the loans. We should keep in mind that the first loans, which are of 10,000/- have a repayment period of one year and are paid through EMIs. Since the loans have been disbursed over a period of 2 years, they will have different dates for completion of repayment.


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