Claim in SBI report / Small street vendors more honest in repaying loans, less than 20 percent NPA

There is a general perception that loans given to small shopkeepers are more risk-averse than industrialists. But, in reality it is not so. According to the SBI report, small street vendors are more honest in terms of repayment of loans.

The share of NPAs was less than 20 per cent of the loans given by the country's largest bank to street vendors. This also did not affect the financial health of the bank much as the loan was guaranteed by the government. It has been said in the report that street vendors who took loans for the second time under PM Svanidhi Yojana, paid the dues on time. Of this, only 1.7 per cent of the loans became NPAs. If the loan is not paid within 90 days, the loan becomes NPA.

• Small shopkeepers who took loans for the second time under the Svanidhi scheme, paid their dues on time
• Bank's financial health is not affected due to NPAs due to government guarantee

A large number of people joined the banking system

Khara said, “With the Svanidhi scheme, we got information about the bureau records and credit history of a large number of people. There are many such people, who have taken a loan through the banking system for the first time. People are now realizing the importance of repaying loans on time.

Many benefits on a minor loss of 172 crores

SBI Chairman Dinesh Khara said that under the scheme, the bank had disbursed loans worth Rs 955 crore. Of these, only 18 per cent i.e. 172 crore loan became NPA. 78 crore loans have been recovered on account of guarantee under Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE). The bank suffered a loss of about Rs 94 crore, but there were many benefits too. More than this, the banks suffer from a single NPA of the corporate sector.

Loans of Rs 3,170 crore disbursed last month

Under this scheme of the Center, a loan of Rs 3,170 crore was given to street vendors last month. SBI's stake stood at more than a quarter. Under the scheme, instead of 10 percent, the loan is available at 7 percent interest rate, on which the government guarantees. Under the scheme, those street vendors get loans, whose jobs have been lost during the pandemic. The government gives loans up to Rs 10,000 to such people.