SBI driving PM SVANidhi evolution; women beneficiaries key pipeline for larger loans: Chief General Manager
Mumbai, June 1
The State Bank of India is playing a key role in helping street vendors move from emergency credit support to mainstream banking under the PM SVANidhi scheme, according to a senior SBI official.
The scheme has emerged as a platform for financial inclusion and entrepreneurship development, particularly among women vendors, according to Govind Narayan Goyal, SBI's Chief General Manager (Agri Business Unit & Government Schemes).
"I'm happy that across the country- and following almost the same pattern for SBI- 46 per cent of the beneficiaries are women," Goyal told ANI.
Highlighting their growing role in the formal credit ecosystem, the SBI official said, "They are the potential... and those will be the primary pipeline for our Stand-Up India and larger retail loans as we roll things out."
Launched in 2020 to provide working capital support to street vendors affected by the COVID-19 pandemic, the PM SVANidhi scheme has recorded more than 1.12 crore loan disbursements across the country.
SBI has emerged as one of the leading lenders under the scheme, disbursing loans through 38 lakh accounts and extending credit worth around Rs 6,200 crore to street vendors.
The bank has adopted a fully digital process for loan sanction and execution. Vendors obtain a Certificate of Vending or identity card from local urban bodies and apply through the Udyam Mitra portal.
After application, the loan process is completed digitally through Digital Document Execution (DDE), allowing vendors to sign loan agreements using their mobile phones without visiting a bank branch. The process also involves no stamp duty charges.
Under the scheme, eligible vendors can access increasing credit limits through a structured repayment-based model. The first loan tranche offers up to Rs 15,000, followed by Rs 25,000 in the second tranche and up to Rs 50,000 in the third tranche.
SBI has also introduced a dedicated PM SVANidhi credit card with a credit limit of Rs 30,000 and an interest-free period of up to 50 days. Timely repayments enable borrowers to access higher credit limits.
According to SBI, digital transactions have become an important factor in assessing borrowers. Around 68 per cent of SBI's PM SVANidhi beneficiaries are actively using digital payment platforms, enabling the bank to evaluate cash flows and repayment capacity without relying on traditional collateral.
Goyal said the scheme is helping create a pathway for street vendors to access larger loans and expand their businesses.
"If a street vendor thinks, 'Okay, why should I be confined to working capital? I want to set up my own micro unit,' he needs a term loan," Goyal said
"For that one, we are ready to serve them under Mudra... SBI is serving from the smallest to the biggest customer," he said
The SBI official said borrowers with strong repayment records, especially those who have progressed to the third tranche, can be linked to schemes such as PM Mudra Yojana, enabling them to transition from small vendors to formal micro-enterprises.
— ANI
Reader Comments
Finally, a scheme that actually reaches the ground level! My cousin in Pune got a loan of Rs 15,000 under this and now his thela business has expanded. The digital process is a game-changer for people who can't take time off to stand in bank queues. And the credit card with 50 days interest-free period is brilliant. 👏
Impressive scale: 38 lakh accounts and Rs 6,200 crore disbursed. That's a massive push for financial inclusion. I've seen similar microcredit programs in other developing countries, but the fully digital execution here is world-class. The transition from emergency COVID support to a mainstream banking pipeline is a smart long-term strategy.
Good scheme but let's be honest - the Rs 15,000 first tranche is very small. For a street vendor trying to buy a new cart or stock inventory, that's barely enough. And the credit card limit of Rs 30,000 is also modest. Hope they increase these limits as vendors prove their creditworthiness. Also, local municipal corporations need to issue vending certificates faster - that's still a bottleneck in many cities.
I love that they're using digital transaction data to assess creditworthiness. This is so much better than asking for collateral that poor vendors don't have. My mother runs a small food stall and she got her third tranche of Rs 50,000 through this - used it to buy a better stove and expand her menu. The Mudra loan linkage is a great next step. Women empowerment through financial independence! 💪
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