Nearly 5,000 street vendors under MCD get PM SVANidhi loans this fiscal

New Delhi, Jul 9 (PTI) Close to 5,000 street vendors under the Municipal Corporation of Delhi have received loans worth over Rs 16 crore under Centre's PM SVANidhi scheme so far in the current financial year, officials said on Friday. A majority of these vendors vendors availed the third tranche of assistance, as under the scheme, vendors graduate to higher loan amounts based on timely repayment of earlier loans -- taken in tranche one and two. According to the civic body, the figures show that banks disbursed loans to 4,931 beneficiaries between April and early July of the 2026-27 financial year, releasing a total of Rs 16.08 crore under the scheme, which provides collateral-free working capital loans to street vendors. Under the scheme, launched by the Ministry of Housing and Urban Affairs (MoHUA), street vendors with a valid certificate of vending (COV) are eligible for collateral-free working capital loans in three tranches of Rs 10,000, Rs 20,000 and Rs 50,000 to help them restart, sustain and expand their businesses. Of the total, 1,090 vendors received the first tranche of loans ranging between Rs 10,000 and Rs 15,000, with disbursements amounting to Rs 1.60 crore. The second tranche, under which eligible beneficiaries can avail loans of Rs 20,000 or Rs 25,000, was sanctioned to 1,774 vendors, taking the total disbursement under this category to Rs 4.18 crore. The largest share of beneficiaries came under the third tranche, where vendors are eligible for loans of Rs 50,000. A total of 2,067 vendors received loans under this category, accounting for Rs 10.30 crore in disbursements. The PM SVANidhi scheme allows street vendors to secure higher loan amounts based on timely repayment of earlier loans. The maximum cumulative assistance available under the scheme is Rs 90,000 across the three tranches. According to the civic body, in the previous financial year (2025-26), banks had disbursed loans worth Rs 61.89 crore to 21,955 beneficiaries in Delhi. During that period, 3,762 vendors received first-tranche loans amounting to Rs 5.28 crore, while 13,226 beneficiaries availed second-tranche loans worth Rs 31.82 crore. Another 4,967 vendors received third-tranche loans of Rs 50,000 each, with total disbursements reaching Rs 24.79 crore. According to officials, since its inception, loans worth Rs 367 crore have been sanctioned and disbursed directly into beneficiaries' bank accounts via direct benefit transfer (DBT) and at least 1.4 lakh loans have been fully repaid. Officials said that the latest figures indicate that while the pace of lending in the current financial year is still at an early stage, the third tranche continues to account for the largest share of loan disbursements, suggesting that a growing number of street vendors are progressing to higher-value credit after successfully repaying earlier loans. PTI VBH PRK