The microcredit scheme, unveiled on July 2, 2020 to provide easy loans to street vendors in the wake of Covid-19, granted the first loan tranche of Rs 10,000 to street vendors, followed by Rs 20,000 as the second installment and Rs 50,000 as the third installment.
According to state data provided by the Ministry of Housing and Urban Affairs, 30,20,566 first loans were disbursed and 2,99,179 second loans. According to the ministry, the first loans have a repayment period of one year and are paid through EMI (Easy Monthly Installments). The loans were disbursed over a two-year period and will have different dates for the completion of repayment.
The ministry also clarified that out of 30.24 lakhs disbursed, only 12% of the loans were flagged as NPAs, meaning that 88% of street vendors regularly repay the loans. Keep in mind that the first loans, which are 10,000/- have a repayment period of one year and are paid through EMIs. Since the loans were disbursed over a 2-year period, they will have different dates for the completion of repayment.