Street vendors told to apply for working capital loan

TIRUVARUR

Street vendors operating in the urban local bodies have been directed to approach the respective civic bodies to apply for the working capital loan under the Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) scheme.

In a press release issued here on Thursday, the Collector T. Anand has called upon the street vendors who have been issued with the Certificate of Vending (CoV) by the Town Vending Committee to approach the Municipal or Town Panchayat offices in the district to apply for ₹10,000 offered as the working capital loan through PM SVANidhi scheme.

The prescribed application form can be downloaded from the

pmsvanidhi.mohua.gov.in website and the filled-in application submitted at the civic body offices for processing.

Stating that the loan to be repaid in 12 monthly instalments, the Collector said there was no need to provide collateral security for the loan and would not attract any prepayment penalty charges. Further, timely or early repayment would make the borrowers eligible for an enhanced loan amount in the next cycle of working capital loan disbursement, he added.

The borrowers could also receive around ₹1200 per annum as ‘reward’ if they opt and carry on their business through the digital mode of transaction. The vendors who have not obtained the CoV could approach the respective civic body in whose limits they were doing business and apply for the CoV, he added.

Those engaged in the sale of vegetables, fruits, ready-to-eat street food, tea, pakodas, breads, eggs, textile, apparel, footwear, artisan products, books/stationery and offering services such as footwear repairing, laundry services, and pan sales are eligible to avail the working capital loan with an interest subsidy component of 7%.

The interest subsidy would be available up to March 31, 2022, and it would be credited into the borrower’s account quarterly. The interest subsidy facility would be available on the first and subsequent enhanced loans up to March 31, 2022, and it would be credited at one go with respect to early repayment.

As the COVID-19 pandemic and consequent lockdowns have adversely impacted the livelihoods of street vendors who represent a very important constituent of the urban informal economy where they ensure the availability of goods and services at the door-step of the urban dwellers at an affordable cost, the Ministry of Housing and Urban Affairs have expedited the implementation of the scheme in the urban civic bodies in the States such as Tamil Nadu where the rules and the scheme under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 had been notified.