PM SVANidhi scheme disburses over Rs 12,000 crore in loans

The PM SVANidhi scheme, launched by the Indian government in June 2020, has successfully disbursed Rs 12,098 crore in loans to street vendors across the country. Out of the 1.12 crore applications received, 88 lakh loans have been approved, totalling Rs 12,739 crore. The scheme, which has been extended until December 2024, offers microloans in three tranches, Rs 10,000, Rs 20,000, and Rs 50,000, based on timely repayment. The State Bank of India is the leading lender, having disbursed 28.17 lakh loans. 

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The government’s microcredit scheme PM SVANidhi for informal micro firms has disbursed Rs 12,098 crore over 88 lakh loan applications to date, according to official data. The plan, which was introduced in June 2020 to provide credit to street sellers up to Rs 50,000, has received 1.12 crore applications, with 92.18 lakh involving Rs 12,739 crore already sanctioned.

The policy has been extended from March 2022 to December 2024, and it now offers up to Rs 50,000 in the third tranche in exchange for prompt return of up to Rs 20,000 in the second tranche. Similarly, eligibility for the second tranche depends on prompt repayment of up to Rs 10,000 in the first tranche.

The first tranche is repayable in twelve monthly installments. The second tranche requires a minimum repayment term of six months and a maximum of 18 months to be eligible for the third tranche.

According to data available on the scheme’s portal, the top lenders so far have been the State Bank of India, which has disbursed 28.17 lakh applications, followed by the Bank of Baroda, which has disbursed 9.16 lakh applications, the Union Bank of India, which has disbursed 9.04 lakh applications, and the Punjab National Bank, which has disbursed 6.78 lakh applications.

Out of all the applications disbursed, 65.4 lakh were disbursed with a first term loan of Rs 10,000, 19.1 lakh with a second term loan of Rs 20,000, and only 3.4 lakh with a third term credit of Rs 50,000.