Initial data from the Ministry of Housing & Urban Affairs indicates the street vendor scheme, called the PM SVANidhi programme has got off to an encouraging start. The ministry launched the PM SVANidhi portal on July 2 and since then over 52,000 applications have come in for microloans up to Rs 10,000.

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The scheme describes street vendors as “hawkers, thelewala, rehriwala, theliphadwala" in different areas/contexts. The foods supplied by them include vegetables, fruits, street food, tea, pakodas, bread, eggs, apparel, footwear, artisan products, books/stationery, etc. The services include barbershops, cobblers, pan shops, laundry too.

Officials further indicate that bank sanctions on around 25,000 loan applications have been received. The ministry aims to push the number of loan applicants to “at least 5 lakh” by September end in 108 select cities looking at their level of preparedness and is working on including NBFCs, Self Help Groups, and MFIs for larger and quicker reach to the vendor category.

A government source also clarified, "The scheme is being implemented in all the cities. 108 cities are selected for saturation until September."

Under the eligibility criteria, the scheme is available for all street vendors engaged in vending in urban areas on and before March 24. For identification purposes, vendors need to be in possession of a Vending Certificate or an ID Card issued by the municipalities.

The database of the vendors is sourced under the Street Vendors Act of 2014 implemented by states and last month the Centre instructed municipalities to immediately issue a permanent I card to such vendors within a month. Alternatively, for vendors who have been left out, certain states have prepared a list of vendors for providing one-time assistance during the lockdown period.

Government officials explain vendors can approach common service centers for documentation and banking correspondents can take their loan applications, alternatively, the vendors can approach the banks also. The scheme provides for lending banks to send a request to the municipalities for the issue of a Letter of Recommendation after verifying the credentials of the applicant.

Vendor details can also be sourced through their membership with vendor associations like the National Association of Street Vendors of India (NASVI), National Hawkers Federation (NHF). Municipalities are instructed to issue the Letter of Recommendation within 15 days to the bank.

Interest rates may vary from 12- 24 percent with 7 percent interest subsidy for standard accounts. The government aims to cover 50 lakh street vendors with a total disbursement of Rs 5,000 crore. Loan amounts more than Rs 10,000 per vendor can be disbursed after completion of the one year tenure, depending on the repayment history and the interest subsidy is available till March 2022.

First Published:Jul 9, 2020 2:18 PM IST