Centre’s Rs 10,000 easy loan coverage to aid street vendors | India News

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Jun 2, 2020

NEW DELHI: The government on Monday said the Rs 5,000 crore micro-lending scheme for street vendors, will allow fruit and vegetable sellers, pakoda walas, barbers, cobblers, laundry service providers and pan shops – seen as a key political constituency – to avail of loans up to Rs 10,000.
The PM Svanidhi scheme will leverage the network of banks, micro-finance institutions and self-help groups to hand out loans to street vendors who were in business before the lockdown at nominal rates for those repaying on time. Timely or early repayment will entitle the borrowers for an interest subsidy of 7%, which will be credited into the beneficiary’s bank account through direct benefit transfer on a six-monthly basis.
Besides, there is a provision for a higher credit limit on timely repayment, an official statement said.
“Over 50 lakh people, including vendors, hawkers, thelawalas, rehri-wala, theliphadwala etc. in different areas/ contexts are likely to benefit from this scheme. The goods supplied by them range from vegetables, fruits, ready-to-eat street foods, tea, pakodas, breads, eggs, textiles, apparel, footwear, artisan products, books/ stationeries etc. The services include barber shops, cobblers, pan shops, laundry services etc,” it said.
The government is looking to use urban local bodies to implement the scheme, although the modalities were not clearly spelt out. A law enacted in 2014 to protect the interests of street vendors had prescribed a system of licensing, which may come handy but the proportion of population that is registered remains low.
The Centre intends to use the new scheme to encouraging digital transactions with a monthly cashback module built in.
“MoHUA in collaboration with State Governments, State Missions of DAY-NULM, ULBs, SIDBI, CGTMSE, NPCI and Digital Payment Aggregators will also launch a capacity building and financial literacy programme of all the stakeholders and IEC activities throughout the country during the month of June and loaning will commence in the month of July,” the government said.

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