Street vendors given Rs 3119 crore collateral free loans
Mar 21, 2022
New Delhi [India], March 21 : Street vendors have been given Rs 3119 crore collateral-free working capital loans under PM SVANidhi Scheme to restart their businesses adversely impacted during the COVID-19 pandemic, Union Minister of State for Housing & Urban Affairs Kaushal Kishore said on Monday.
In a written reply to a question in the Rajya Sabha, the minister said, as on 15 March 2022, 44.8 lakh eligible loan applications have been received, out of which 33.4 lakh loan applications have been sanctioned and 30.1 lakh loans have been disbursed. These include 1st as well as 2nd tranche loans.
"As on 15 March 2022, loans amounting to Rs 3,119 crore have been released to the beneficiaries by the Lending Institutions," the minister said.
Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi Scheme) was launched on 1st June 2020 to facilitate collateral-free working capital loans to street vendors to restart their businesses, which were adversely impacted during the COVID-19 pandemic.
The scheme seeks to facilitate collateral-free working capital loan up to Rs 10,000 of 1-year tenor; enhanced loan of Rs 20,000 and Rs 50,000 in the second and third tranches respectively, on repayment of earlier loans.
Regular repayments are incentivised through an interest subsidy of 7 per cent per annum. The scheme also promotes digital transactions by way of providing cashback up to Rs 1,200 per year.
As on 15 March 2022, 28.8 lakh Street vendors have been benefitted under the scheme, Kishore said.
