In order to make hawkers eligible for bank loans under the PM SVANidhi scheme, BMC issues letters

For 40 thousand of hawkers to be eligible for loans from any nationalised bank under the Prime Minister Street Vendor Atma Nirbhar Nidhi Scheme (PM SVANidhi scheme), the Brihanmumbai Municipal Corporation (BMC) has provided Letters of Recommendation (LOR). A senior officer predicts that BMC would issue more than 50,000 LOR before the end of the week.

 

The Prime Minister Street Vendor Atma Nirbhar Nidhi Program (PM SVANidhi scheme) was established by the Ministry of Housing and Urban Affairs to empower street vendors by not only providing them with loans but also for their overall development and economic uplift. About 50 lakh street vendors are expected to benefit from the program's collateral-free working capital loans of up to Rs 10,000 with a one-year term, which will allow them to continue operations in urban and semi-urban areas. The applicants must pay back the loan within one year, and the EMI payments are small.

 

Asheesh Sharma, the Additional Municipal Commissioner, stated that his officers were in contact with members of the hawkers' association in order to persuade them to apply for a loan under this programme. Even in the future, the hawkers will benefit from this plan. Once a hawker pays back his loan within the specified period of time, he can easily qualify for more business loans and other sorts of loans because prompt loan repayment will increase their credibility with the bank.

 

The BMC has set up more than 350 camps where hawkers can submit applications organised by ward. BMC assists and directs applicants as they complete online forms. The civic body issues LOR to applicants after receiving their applications, assisting hawkers in obtaining a bank loan. "As of today, they have issued 40 thousand LOR and will issue more 60 thousand LOR until the end of December," said Deputy Commissioner Sanjog Kabre.