Context:

• The PM Svanidhi scheme has expanded access to formal credit in India as per study by SBI.

Analysis of the PM SVANidhi Scheme by SBI: Major Findings

• Financial Inclusion and Empowerment: The PM SVANidhi scheme has led to an increase in the number of people included in formal credit and has empowered borrowers financially. 
• First-Time Borrowers and Active Usage by Street Vendors: Many borrowers are first-time borrowers, and a significant number of street vendors are actively using their Jan Dhan accounts and debit cards. 
• Improved Borrower Behavior and Increased Spending: The study also indicates that the formalization of credit has resulted in improved borrower behavior and increased spending among borrowers.
• Demographics of Scheme Beneficiaries: About two-thirds of the borrowers under the scheme fall in the age group of 26-45, and many are first-time borrowers.
  •  Moreover, over 50 lakh street vendors, who have borrowed under the scheme, are actively using their Jan Dhan accounts and debit cards. 
• Top Performing Cities: Of the cities with population over 10 lakh, Varanasi is the top performer where 4-5 % of total spenders are active spenders, followed by Bengaluru, Chennai and Prayagraj. 
• Empowerment of Urban Females: The study said that 43% share of females indicates empowerment capabilities of urban females. 

News Source: TOI