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The State Bank of India (SBI) 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)
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