The Union Ministry of Housing and Urban Affairs has disbursed loans totaling Rs 13,422 crore to street vendors under the PM SVANidhi scheme, with 94.31 lakh loans granted as of December 8, 2024. This initiative, aimed at supporting urban street vendors, has helped boost livelihoods and provide financial assistance.
In a written response to a query in the Rajya Sabha, Minister of State for Housing and Urban Affairs, Tokhan Sahu, highlighted that out of the 94.31 lakh loans disbursed, 40.36 lakh loans have already been repaid by the beneficiaries.
ABOUT THE PM SVANIDHI SCHEME
Launched in 2020 by the Narendra Modi government during the COVID-19 pandemic, the PM SVANidhi scheme offers collateral-free loans of up to Rs 50,000 to urban street vendors. The scheme aims to provide financial support to vendors, enabling them to restart or scale their businesses during and after the pandemic.
Tokhan Sahu further stated that there have been no fraud-related complaints reported against any of the agencies or companies distributing the loans under the scheme.
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ELIGIBILITY
Street vendors who have been in business for at least one year before March 24, 2020, and have a valid ID proof are eligible to apply.
LOAN AMOUNTS
The scheme offers loans of up to Rs 10,000 for the first loan cycle, Rs 20,000 for the second, and Rs 50,000 for the third.
INTEREST
The scheme offers an interest subsidy of 7% per annum on timely or early repayment.
INCENTIVES
The scheme offers a monthly cash-back incentive of up to ?100 for digital transactions.
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REPAYMENT
On timely repayment of the first loan, the borrower becomes eligible for the higher loan amounts in the subsequent cycles.
HOW TO APPLY
To apply, check your name in the survey list on the PM SVANidhi portal and note your Survey Reference Number (SRN).
BEST PERFORMING STATE
States are categorized into three groupsâlarge states, hilly and northeast states, and small states/Union Territoriesâbased on their size. Each state has a set target for disbursement, and their performance is measured and ranked accordingly.
In a notable achievement, Madhya Pradesh was recognized as the ‘Best Performing State’ under the PM SVANidhi scheme this year. Assam was ranked second, receiving the ‘Innovation and Best Practices Award.’
