INSUBCONTINENT EXCLUSIVE:
Banks offer high interest rates on loans to beneficiaries under Prime Minister's Street Vendors schemeAs national lockdown was imposed in
For the purpose of scheme administration, an end-to-end solution through an IT platform has been developed in collaboration with Small
Industries Development Bank of India (SIDBI), which is the implementation partner for the scheme.The loan processing under the scheme
applications have been received under this scheme
Out of these, over 19.6 lakh loans have been sanctioned and over 14.6 lakh loans have been disbursed.However interest rates on loans to
lender State Bank of India offers 9.9 per cent interest rate under the scheme
Union Bank of India gives 7.3 per cent rate of interest, UCO Bank gives 8.5 per cent, while Indian Overseas Bank offers 8.1 per cent
Punjab National Bank's interest rate is slightly lower at 6.9 per cent.However Indian Bank and Bank of Baroda are the two banks who offer
the highest rates of interest at 13.5 per cent and 12.7 per cent respectively.Insistence On Credit Rating Of Beneficiaries By BanksWhile
several state-owned banks have quite high interest rates for beneficiaries under the SVANidhi scheme, many of them also insist on credit
ratings of those seeking loans
Interestingly, majority of street vendors don't even have bank accounts or are a part of the formal financial system.State Bank of India,
Punjab National Bank and Bank of Baroda insist on credit score of a minimum of 650 and above
