28,69,477 eligible beneficiaries benefited under PM SVANidhi Scheme

₹ 45.21 crore & ₹ 7.55 crore paid as interest subsidy and cash back respectively

As apprised by Ministry of Housing and Urban Affairs (MoHUA), Street Vendors engaged in vending in urban areas as on or before March 24, 2020 are eligible for benefits under PM SVANidhi Scheme. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha.

The Minister stated that 28,69,477 eligible beneficiaries have benefited under the PM SVANidhi Scheme till March 7, 2022. A statement indicating State and year-wise details of the loan disbursed under the scheme is at ANNEXURE-I.

So far, the Minister stated, an amount of ₹ 45.21 crore & ₹ 7.55 crore have been paid as interest subsidy and cash back respectively, the Minister stated. State wise details is at ANNEXURE-II.

The Minister stated that PM SVANidhi is a Central Sector Scheme. No funds are released to the States for disbursal to beneficiaries. Loan amount is directly released to the beneficiaries by the Lending Institutions, the Minister added.

Giving more details, the Minister stated that an interest subsidy of 7% is paid on quarterly basis through direct benefit transfer to the borrower on repayment of the loan instalments and cash back of upto ₹ 100 per month is provided to the street vendors to incentivize digital transactions.

The Minister stated that the eligible vendors are identified as per following criteria:-

1. Street vendors in possession of Certificate of Vending / Identity Card issued by Urban Local Bodies (ULBs);
2. The vendors, who have been identified in the ULB led survey, but have not been issued Certificate of Vending / Identity Card;
3. Street Vendors, left out of the survey or who have started vending after completion of the survey and have been issued Letter of Recommendation (LoR) to that effect by the ULB / Town Vending Committee (TVC); and
4. The vendors of surrounding development/ peri-urban / rural areas vending in the geographical limits of the ULBs and have been issued Letter of Recommendation (LoR) to that effect by the ULB / TVC.

Giving details on the rate of interest charged by different types of Lending Institutions under PM SVANidhi Scheme, the Minister stated as under:-

1. In case of Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Cooperative Banks & SHG Banks, it is as per their prevailing rates of interest as per their Board approved policies.
2. In case of Non-Banking Finance Company (NBFC), NBFC-Micro-Finance Institutions (MFIs) etc., it is as per RBI guidelines for respective lender category.
3. For MFIs (non NBFC) & other lender categories not covered under the RBI guidelines, it is applicable as per the extant RBI guidelines for NBFC-MFIs.

An interest subsidy of 7% is paid on a quarterly basis on timely repayment of the loan instalments. The interest above the subsidy is borne by the beneficiary.

Interest subsidy and cashback scheme for urban street vendors ensures direct lender disbursal and digital transaction incentives. PM SVANidhi is a central-sector lending and incentive framework where lending institutions directly disburse loans to eligible urban street vendors, while the Centre does not transfer funds to States. The scheme provides an interest subsidy paid by direct benefit transfer on timely repayment and a monthly cashback incentive to promote digital transactions; beneficiaries bear any interest beyond the subsidy. Eligibility is determined by urban local bodies and town vending committees through certificates, survey identification, or Letters of Recommendation for vendors including peri-urban vendors within ULB limits.