Inconsistency in distribution of vendor loans, UP top beneficiary 

Only about 41 per cent of the 33.69 lakh loan applicants under the PM SVANidhi scheme have actually received them.

Published: 15th February 2021 08:29 AM  |   Last Updated: 15th February 2021 08:29 AM   |  A+A-

The livelihood of street vendors is in peril due pandemic

Image for representation (Photo | M K Ashok Kumar, EPS)

Express News Service

NEW DELHI:  Only about 41 per cent of the 33.69 lakh loan applicants under the PM SVANidhi scheme have actually received them. West Bengal is at the bottom, with less than two per cent beneficiaries (only 118 of 6545 applicants received loans). A look at government data discloses a stark contrast among the states. Uttar Pradesh tops with 3.60 lakh, nearly 48 per cent of the persons from the state seeking loans.

The Prime Minister Street Vendor’s AtmaNirbhar Nidhi Scheme launched on June 1, 2020 aims at facilitating collateral free working capital loans of up to Rs 10,000 for one year for about 50 lakh street vendors across the country. The approved outlay for the scheme is Rs 600 crore. So far, 33,69,678 persons have applied in eight months and 18,38,870 have been sanctioned the loan. Till date, loans have been disbursed to 13,82,539 beneficiaries across the country. 

Telangana is in second position. Of the 4.42 lakh who applied, 2.42 lakh have received the amount. States like Madhya Pradesh and Maharashtra have also seen a large number of applicants. In Madhya Pradesh, nearly 2.40 lakh of 3.91 lakh applicants (62 per cent) got the loan.  A government official said that an end-to-end solution through an IT platform has been developed in collaboration with Small Industries Development Bank of India (SIDBI) to handle this.

Loan processing under the scheme commenced on July 2, 2020, and banks have distributed nearly Rs 1,364 crore in loan amounts so far. The maximum of Rs 383 crore has been disbursed by State Bank of India. Vendors left out of the identification survey conducted by Urban Local Body (ULB) may apply through the PM SVANidhi portal. ULB has to complete the verification and issue LoR within 15 days of submission of the application. 

Officials said the Ministry of Urban Affairs has launched the scheme of socio-economic profiling of PM SVANidhi beneficiaries and their families in 125 cities selected for saturation in the first phase. 

Relief package
The scheme intends to facilitate collateral free working capital loans of up to Rs10,000 of one-year tenure, to approximately 50 lakh street vendors


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