New Delhi, May 20 -- 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....