This scheme was launched in July 2020 to help the street vendors who were hit by Kovid-19. Under the scheme, loans were offered to street vendors in three phases: ‘10,000,’ 20,000 and ‘50,000. The vendor had to repay the loan within 12 months. According to Ministry of Housing and Urban AffairsSo far 30,20,566 first loans have been disbursed. However, only 11,62,775 – about 38.49% – have been repaid so far. Housing and Urban Affairs Minister Hardeep PuriHowever, he added, “We are not worried about NPAs (non-performing assets) in this scheme.”
Puri, who was speaking at the launch of PM-Svanidhi Utsav in 75 cities, said though there were some concerns at the time of conceptualizing the scheme, the initiative has been successful. “When we conceptualized the scheme, I was concerned that banks might feel that there was no incentive for them to offer loans of ‘10,000’. We were concerned that once the scheme was launched, Beneficiaries will come back for the second and third installments. But the scheme has received a very good response,” Puri said.
Like most central schemes, PM-Svanidhi has been implemented well in BJP-ruled states, including Madhya Pradesh, Uttar Pradesh and Gujarat. However, it has received a lukewarm response from the opposition-ruled states. Trinamool Congress ruled West Bengal 5% of the target has been achieved, CPM-ruled Kerala has achieved 8% and AAP-ruled Delhi has achieved 26%.
The Center will now organize Svanidhi Mahotsav in 75 cities from July 9 to 31 to “celebrate the success” of the scheme. “The purpose of the festival is to celebrate 75 years of IndiaHonoring their journey under the scheme to interact with these nano-entrepreneurs to demonstrate independence, credit discipline, digital behavior and showcase their shrewd business acumen,” Puri said.