Only 12-13% of loans given to street vendors turned bad loans: Puri

Union housing and urban affairs minister Hardeep Singh Puri on Thursday said that only 12-13 per cent of loans disbursed to street vendors turned out to be bad loans

Union housing and urban affairs minister Hardeep Singh Puri on Thursday said that only 12-13 per cent of loans disbursed to street vendors under the Prime Minister's Street Vendors AtmaNirbhar Nidhi (PM-SVANidhi) scheme became Non-Performing Assets (NPAs).

The scheme facilitates collateral-free working capital loan up to Rs 10,000 for one year, with enhanced loan of Rs 20,000 and Rs 50,000 in the second and third term, respectively on repayment of earlier loans to enable business expansion.

In a statement, the ministry said that 53.7 lakh eligible applications have been received so far under the scheme. Out of these, 36.6 lakh loans have been sanctioned and 33.2 lakh loans have been disbursed.

The total amount disbursed so far is Rs 3,592 crore and about 12 lakh street vendors have repaid their first loan, it said.

Asked about the NPAs under the scheme, Puri at a press conference said they were 12-13 per cent, which is not something to worry about.

The ministry of housing and urban affairs is also organising 'SVANidhi Mahotsav' -- a cultural festival for celebrating the success of PM SVANidhi Scheme and the beneficiary street vendors and their families from July 9-31, 2022 in 75 cities across 33 states and Union Territories.