Increasing Working Capital Loans to Street Vendors: RBI Pushes PSBs



The Reserve Bank of India (RBI) convinced public sector banks (PSBs) to increase their working capital loans to £ 10,000 to street vendors who bore the brunt of the COVID-19 pandemic and the lockdowns that followed.

Given that the livelihoods of street vendors (SVs) have been adversely affected in the two waves of the pandemic, the central bank is keen to see banks deploy broader activities under the Atma Nirbhar Nidhi (PM SVANidhi) scheme of a street vendor, the lead banker said. …

As of June 14, 2021, lenders (including banks, non-bank financial companies and microfinance institutions) received a total of 42,27,999 applications under the PM SVANidhi scheme, which was launched last year.

However, the ratio of authorized and disbursed loans as a percentage of total applications, according to the Department of Housing and Urban Affairs (MoHUA).

The ratio of the number of issued loans to authorized loans was 84.41 percent. As a result, the total loans approved and disbursed by the lenders were Rs 2,457.85 and Rs 2,059.46, respectively.

According to MoHUA, the average time for issuing an SV loan authorization was 20 days. About 60 percent of the loans were issued to SV men and the remainder to SV women. The average age of a loan applicant was 41 years.

The banker cited above said the scheme could be modified to provide more coverage for SVs.

The number of SVs accepting digital payments was 19 31 272 people. These sellers received 50.53 lakh cashback.

Street vendors selling vegetables, fruits, prepared street food, tea, clothing and looms, cosmetic and fashion accessories, footwear, artisan products, etc., as well as barbershops, shoemakers, paan shops and laundries suffered untold misery. pandemic.

The Covid-19 lockdown has forced the aforementioned organizations to close their businesses temporarily or permanently.

Under the PM SVANidhi scheme, an individual lending institution can form joint responsibility groups (JLGs) from eligible suppliers. Street Vendor Common Interest Groups (CIGs), already formed by states, can be transformed into JLGs by lending institutions.

The scheme was designed to help formalize street vendors and open up new opportunities for moving up the economic ladder.

Total Applications


Paid out





₹ 2457.85 kr

CZK 2,059.46


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