PM SVANidhi: 43% Women Beneficiaries, 70% Non-General Category


The micro-credit scheme for street vendors initiated by the Modi government has received praise in a State Bank of India (SBI) research report. According to the report, nearly 75% of the beneficiaries of the PM Street Vendors AtmaNirbhar Nidhi (PM SVANidhi) scheme come from the non-general category, with Other Backward Classes (OBCs) accounting for 44%. The Scheduled Castes and Scheduled Tribes constitute 22% of the total disbursement, and 43% of the beneficiaries are women. The report lauds the inclusive nature of the scheme, highlighting its role in promoting financial empowerment and entrepreneurship.

The SBI’s research underscores the social inclusivity of the welfare scheme, particularly in the context of ongoing debates around Other Backward Classes (OBCs). The report suggests that the PM SVANidhi scheme has successfully connected marginalized urban micro-entrepreneurs, breaking down community barriers. The persistency ratio for repayment of loans indicates the scheme’s popularity and the incentivization of those repaying loans.

The success of the scheme is evident in the repayment rates and increasing loan uptake. The ratio of individuals repaying the first loan of Rs 10,000 and taking the second loan of Rs 20,000 is 68%, while the ratio for repaying the second loan of Rs 20,000 and taking the third loan of Rs 50,000 is 75%. The report notes that approximately 70 lakh loans have been disbursed in three tranches, benefiting over 53 lakh street vendors, with a total value exceeding Rs 9,100 crore.

The findings emphasize the Modi government’s commitment to financial inclusion and equitable development. The PM SVANidhi scheme’s success in supporting micro-entrepreneurs, fostering entrepreneurship, and promoting inclusive growth aligns with the broader objectives of economic upliftment and empowerment.

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