PM SVANidhi disburses Rs 1,160 crore to loan 11,80,589 applications from micro or nano entrepreneurs such as street vendors

PM SVANidhi,the micro-credit scheme by the Modi government for micro or nano entrepreneurs such as street vendors has enabled disbursement of 11,80,589 loan applications involving Rs 1,160 crore as of December 22, this year, according to the data available on the scheme’s website.

This is up 762 per cent of loan applications involving Rs 136.36 crore disbursed as of September 21, 2020. The scheme has already received over 30.68 lakh loan applications out of which more than 16.52 lakh were sanctioned as of September 21. Moreover, the sanctioned amount has also grown. Also, the sanctioned amount as of September 21 stood at Rs 1,646.26 crore, up from
Rs 518.66 crore during the said period.

Importantly, among lender categories including public and private banks, regional rural banks, micro finance institutions (MFIs), state and urban co-operative banks, small finance and district co-operative banks and more, public banks have disbursed the majority of applications.

While 10.86 lakh applications were disbursed by public banks, 57,664 applications were disbursed by the regional rural banks. MFIs disbursed 17,214 applications and private banks disbursed 13,082 applications so far. Moreover, among the top 10 lending institutions were SBI with 3,26,823 disbursed applications followed by 1.58 lakh by Union Bank of India, 1.31 lakh by Bank of Baroda, 1.05 lakh by Bank of India, 89,437 by Punjab National Bank etc.

PM SVANdhi offers an interest subsidy at 7 per cent per annum as incentives to borrowers for making regular loan repayment while it also has a provision of up to Rs 100 per month in cash backs on undertaking prescribed digital transactions. The vendors could also be eligible for the enhanced limit in their next cycle of the loan if there timely or early repayment.