12-13% NPAs in street vendors’ loan scheme: Union minister

The government said on Thursday that non-performing assets (NPA) accounted for “12-13 per cent” of the loans disbursed to street vendors under the Prime Minister’s Street Vendors AtmaNirbhar Nidhi (PM-Svanidhi) scheme.

The scheme, which was launched on July 2, 2020, had thus far disbursed loans of Rs 10,000 each to 33.23 lakh street vendors, Union Minister of Housing and Urban Affairs Hardeep Puri said on Thursday.

According to the minister, till now, 53.7 lakh eligible applications were received under the scheme, in which loans were sanctioned anto 36.6 lakh applicants, and loan amounts were released to 33.2 lakh applicants. The total loan amount disbursed so far is Rs 3,592 crore, and about 12 lakh street vendors had repaid their first loan, Puri said.

The scheme facilitates collateral-free working capital loan, with a one-year tenure, of up to Rs 10,000 to street vendors. The scheme also provides enhanced loans of Rs 20,000 and Rs 50,000 in the second and third term, respectively, on repayment of earlier loans, to enable business expansion.

Puri said that the Ministry of Housing and Urban Affairs would organise ‘SVANidhi Mahotsav’—a cultural festival to celebrate the success of the PM Svanidhi Scheme and the beneficiary street vendors and their families—from July 9 – 31, 2022, in 75 cities across the 33 states and union territories.

“The festival aims to celebrate 75 years of India’s Independence, with these nano-entrepreneurs, honouring their journey under the PM-Svanidhi scheme for demonstrating credit discipline, digital behaviour and displaying their astute business acumen,” Puri said.