

PM SVANidhi Scheme, PM Mudra Yojana may face loan repayment stress amid West Asia war
Subscribe to enjoy similar stories.Policy planners expect some repayment stress to affect small-ticket loans disbursed under two flagship government schemes—PM SVANidhi Scheme and Pradhan Mantri Mudra Yojana—in the next few quarters as a fallout of the war in West Asia, according to three people aware of the issue.The PM SVANidhi Scheme provides working capital term loans to urban street vendors, while the Pradhan Mantri Mudra Yojana funds micro enterprises and small businesses. Many of the loan beneficiaries of these schemes are vulnerable to economic disruption and rising living costs.“We are expecting some stress in the PM SVANidhi Scheme portfolio as it directly caters to street vendors, who form an important part of the informal urban economy.
Street vendors play a critical role in the urban supply chain by providing convenient access to goods and services across neighbourhoods and communities,” one person said on condition of anonymity.The reduced footfall in offices is likely to impact the earnings of street vendors and their repayment capacity, the person added.“We run a food stall in New Delhi and had taken a loan of ₹10,000. Rising LPG cylinder prices had already put pressure on our earnings and now fewer people are visiting the stall as many employees have shifted to work-from-home arrangements,” said Anand Kumar (name changed), a street vendor in south Delhi.
Read on livemint.com