Over ₹95,000 cr disbursed to around 50 lakh street vendors under govt scheme
PSBs need to step up the pace of disbursement to include more beneficiaries under the scheme, financial services secretary Joshi said
OVER ₹95,000 crore had been disbursed to more than 50 lakh street vendors under the Prime Minister's Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme as of 13 November, financial services secretary Vivek Joshi said on Sunday.
While 72.44 lakh PM SVANidhi loans have been sanctioned so far, public sector banks (PSBs) need to step up the pace of disbursement to include more beneficiaries under the scheme, Joshi said while speaking at a PM SVANidhi outreach programme in Tamil Nadu.
"Pace of disbursement needs to step up during the second tranche…Banks have to step up efforts for digital onboarding of street vendors," Joshi said.
Launched on 1 June 2020, PMSVANidhi is a micro-credit scheme tailored for street vendors, which provides up to ₹50,000 collateral-free working capital loans in tranches.
Under this scheme, credit worth up to ₹10,000 is provided for 12 months under the first tranche, up to ₹20,000 for the next 18 months under the second tranche, and up to ₹50,000 for the next 36 months under the third tranche.
The vendors, availing loans under the scheme, are also eligible to get an interest subsidy at 7%, which is credited to borrowers' accounts quarterly.
"Bank-wise targets have been allocated to public sector banks under the scheme," he added.