1.16 lakh hawkers who qualify for an Rs. 10,000 loan from any nationalised bank under the "Prime Minister Street Vendor Atmanirbhar Nidhi Scheme" (PM SVANidhi scheme) have received letters of recommendation (LOR) from the BMC
. On Thursday in Mumbai, Prime Minister Narendra Modi will hand out a check for the sum.
Each of the 24 administrative wards in the city had a centre established by the BMC. A total of 2,301 camps were set up to serve as many street vendors as possible. They received detailed instructions on how to submit an online application.
"We got 1.21 lakh applications, of which 1.16 lakh received LOR, and more than one lakh was accepted. Loans for up to two lakh merchants would now be disbursed, according to a civic official. The scheme, introduced by the Union Ministry of Housing and Urban Affairs in 2020, aims to provide over 50 lakh street vendors with collateral-free working capital loans to support the restart of their businesses in urban and semi-urban areas.
Within a year, the vendors will be permitted to pay back the loan in equal monthly instalments. "The programme is designed to assist vendors that experienced commercial losses due to the epidemic. The vendor will be eligible for another Rs. 20,000 loan the following year, which might be up to Rs. 50,000 if paid on time, if loans are repaid within six months, according to the official.
The hawkers must first register on the Central Government portal and possess an Aadhar card, a bank account, and a letter of recommendation from BMC. Hawkers who have received identity cards and those who have taken part in municipal body surveys but have not received licences are also eligible. Vendors can utilise the loan to buy produce, fruits, clothing, stationery, shoes, and other items.