Dr. Vivek Joshi, Secretary, Department of Financial Services, Ministry of Finance, co-chaired a review meeting with Thiru Shiv Das Meena, Chief Secretary, Tamil Nadu in Chennai to assess and review the performance of PM SVANidhi scheme with special emphasis on reducing the number of applications returned by banks, as well as on SHG-Bank Linkage and Micro Enterprise Development.

The meeting was attended by Additional Secretary, DFS, MD&CEOs of Indian Bank and Indian Overseas Bank, Additional Chief Secretary, Principal Secretary, Joint Commissioners/ Directors of Municipal Administration/Other Urban Local Bodies from the Tamil Nadu Government, and local bank heads from SLBC,​ Tamil Nadu.

Secretary (FS) mainly focused on high number of applications returned by banks and urged ULBs and banks to sit together and review the returned applications to rectify the deficiencies in the applications for further sanction and disbursement. He exhorted bankers not to return the applications on low CIBIL score alone, as already clarified by DFS.

Thiru Meena instructed all ULBs to mobilize fresh applications to achieve the target set under the PM SVANidhi scheme, in close coordination with banks.

Dr. Joshi instructed Banks to sanction the loans with a clear heart to benefit the small borrowers and noted that these loans are already secured under the credit guarantee scheme of the Government of India.

The importance of quick and positive processing of loans under SVANidhi needs to be disseminated at the branch level also. Senior Officials from banks need to undertake field visits to facilitate effective implementation of the scheme.

Update on PM SVANidhi scheme:

PM SVANidhi scheme envisages empowerment of street vendors through hassle-free access to affordable credit and digital onboarding for their economic development.

The Scheme continues to make significant strides in providing credit support to street vendors. The scheme performance is regularly monitored jointly by Ministry of Housing and Urban Affairs (MoHUA) & DFS for ensuring its effective implementation across the country. As of 31st July 2023, 54.40 lakh applications have been sanctioned while 51.46 lakh applications have been disbursed amounting to Rs. 6,623 crores.

Access to affordable credit for street vendors: banks urged to expedite sanctioned loans and avoid returns based solely on low credit scores. A joint DFS-Tamil Nadu review directed banks and urban local bodies to collaboratively review and rectify returned PM SVANidhi applications, avoid rejection solely for low credit bureau scores, expedite sanction and disbursement of loans covered by the credit guarantee scheme, and ensure branch-level dissemination and senior-official field visits to improve scheme implementation.