PM SVANidhi loans: 88% of street vendors regularly pay PM SVANidhi loans

Around 12% of the loans disbursed to street vendors under the PM SVANidhi scheme have been reported as Non-Performing Assets (NPA).

The micro-credit scheme, introduced on July 2, 2020 to provide easy loans to street vendors in the wake of Covid-19, gave the first loan tranche of Rs 10,000 to street vendors, followed by Rs 20,000 as the second tranche and Rs 50,000 as third leg.

According to state data provided by the Ministry of Housing and Urban Development, 30,20,566 first loans and 2,99,179 second loans have been disbursed. According to the ministry, the first loans have a repayment term of one year and are paid through EMI (easy monthly installments). The loans have been disbursed over two years and will have different repayment end dates.

The ministry also clarified that out of the 30.24 lakhs disbursed, only 12% of the loans have been declared NPA, which means that 88% of the street vendors are regularly repaying the loans. Keep in mind that the first loans, which are 10,000/-, have a repayment term of one year and are paid through EMI. Since the loans have been disbursed over 2 years, they will have different repayment end dates.

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