PM SVANidhi Scheme: Loans to Minority Street Vendors Remain Low

Ministry of Housing shares PM SVANidhi loan data

The Ministry of Housing and Urban Affairs informed the Rajya Sabha that under the PM SVANidhi scheme, 42.7 lakh loans worth ₹5,152.37 crore have been disbursed to street vendors. Shockingly, only 9.3% of these loans were granted to hawkers from minority communities, totaling 3.98 lakh loans.

To assist street vendors in overcoming the economic difficulties caused by the pandemic, the government launched the PM SVANidhi micro-credit scheme in 2020. This initiative provides collateral-free loans of ₹10,000, with 7% interest subsidy, and subsequent loans of ₹20,000 and ₹50,000.

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Decline in loans to minority street vendors

The data presented by the Ministry in response to MP Dr. John Brittas’s query indicates that the share of loans granted to street vendors from minority communities has decreased year on year. In 2020-21, 2,10,457 loans were granted to minorities, while in 2021-22 and 2022-23, only 98,973 and 88,609 loans were granted, respectively, the lowest percentage being 7.76% in 2022-23.

Dr. Brittas expressed concern over the data, stating that it paints a bleak picture for minority street vendors. He emphasized that although minorities make up approximately 20% of the country’s total population, they are significantly represented among street vendors due to various socio-economic factors.

State-wise disbursal of loans under PM SVANidhi Scheme aligned with population

The Ministry’s data reveals that loans have been distributed in a state-wise manner, with Uttar Pradesh granting the highest number of loans at 11,22,397, while Sikkim issued only one loan. Furthermore, Uttar Pradesh has also issued the most loans to hawkers from minority communities, totaling 95,032.

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