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 42.7 lakh loans worth 5,152.37 crore have been disbursed to street vendors under the PM SVANidhi scheme. Surprisingly, only 9.3% of these loans, totaling 3.98 lakh, were granted to hawkers from minority communities.

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

According to the data provided by the Ministry in response to MP Dr. John Brittas’ inquiry, the proportion of loans granted to street vendors from minority communities has decreased year on year. Minorities received 2,10,457 loans in 2020-21, but only 98,973 and 88,609 loans in 2021-22 and 2022-23, respectively, with the lowest percentage of 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.