Just 9.3% of loans under PM SVANidhi given to vendors from minority communities


A total of 42.7 lakh loans amounting to ₹5,152.37 crore have been disbursed to street vendors under the PM SVANidhi scheme, out of which only 3.98 lakhs, or 9.3%, were to hawkers from the minority communities, the Ministry of Housing and Urban Affairs told the Rajya Sabha

Points to ponder:

  • The PM SVAnidhi plan was unveiled as a component of the Atmanirbhar Abhiyan’s Economic Boost. It has been in place since June 1st, 2020, to offer street vendors affordable working capital financing so they can restart their livelihoods, which have been negatively impacted by COVID-19 lockdowns. Under this program, 42 lakh street sellers will receive benefits.
  • It is fully funded by the Ministry of Housing and Urban Affairs.
  • The scheme offers collateral-free loans of ₹10,000 with subsequent loans of ₹20,000 and ₹50,000 with a 7% interest subsidy.
  • The Ministry of Housing and Urban Affairs has informed the Rajya Sabha that only 9.3% of the loans disbursed under the scheme were given to street vendors from minority communities.
  • The data shows a decline in the share of loans to minority street vendors from 10.23% in 2020-21 to an all-time low of 7.76% in 2022-23.
  • Uttar Pradesh disbursed the maximum number of loans, while Sikkim disbursed only one loan under the scheme.
  • The low representation of minority street vendors in the loans disbursed under the scheme is a matter of concern and highlights the need to ensure equitable distribution of benefits to all sections of society.
  • As of now, a total of 42.7 lakh loans amounting to ₹5,152.37 crore have been disbursed under the PM SVANidhi scheme to street vendors across India.
  • In 2020-21, 2,10,457 loans were disbursed to minorities, while it was 98,973 loans in 2021-22 and 88,609 in 2022-23.
  • The data shared by the Ministry was in reply to a question by John Brittas, MP.
  • Dr. Brittas has stated that the low representation of minorities among the street vendors who received loans under the PM SVANidhi scheme is a cause for concern, especially considering that they constitute around 20% of the total population of the country.
  • The Ministry’s data also shows that the state-wise disbursal of loans seemed to be aligned with its population, with Uttar Pradesh disbursing the maximum number of loans at 11,22,397.
  • Uttar Pradesh also gave the largest number of loans — 95,032 — to hawkers from minority communities.
  • The PM SVANidhi scheme is aimed at providing handholding support to street vendors to tide over the pandemic-induced economic stress