Street vendors in 108 cities to get loans from next month

4 months ago 47
google news

NEW DELHI: The government will start disbursing loan to

street vendors

from next month to bring their lives back on track and 108 cities will be covered in the first phase. The housing and

urban affairs ministry

said the integrated IT platform for the scheme — PM SVANidhi — is likely to be launched by last week of June. “In the first phase, 108 cities have been selected, in consultation with states and UTs, for saturation by September 2020,” the ministry said. The ministry on Friday signed a Memorandum of Understanding (MoU) with Small Industries Development

Bank of India

(SIDBI) to engage it as the implementation agency for the scheme which is likely to benefit nearly 50 lakh street vendors. Under the scheme, the vendors can

avail

a working capital loan of up to Rs 10,000, which is repayable in monthly instalments in one year. On timely or early repayment of the loan, an interest subsidy of 7% per annum will be credited to the bank accounts of beneficiaries through direct benefit transfer on quarterly basis. There will be no penalty on early repayment of loan.

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