This is a central government scheme, launched on 1 June 2020, under the Ministry of Housing and Urban Affairs. It addresses the importance of street vendors and their crucial contribution to the economy. Pandemic has adversely impacted the livelihood of street vendors. Their income has drastically reduced or came to a complete halt. Hence, it became pertinent to cater to the needs of this section of the population to resume their business. It is aimed at providing affordable working capital to street vendors.
Who are street vendors?
- Any person engaged in vending of articles, goods, wares, food items or merchandise of daily use or offering services to the public in a street, footpath, pavement etc., from a temporary built up structure or by moving from place to place.
- Street vendors here include services like barber shops, cobblers, pan shops, laundry services, etc. The goods supplied by them include vegetables, fruits, ready-to-eat street food, tea, pakodas, bread, eggs, textile, apparel, footwear, artisan products, books/ stationery, etc.
- To facilitate working capital loan up to `10,000;
- To incentivize regular repayment; and
- To reward digital transactions
Street vendors/ hawkers vending in urban areas, as on or before March 24, 2020, including the vendors of surrounding peri-urban and rural areas.
It will be implemented upto March 2022.
How to apply?
- According to the Street Vendors Act, 2014 the Town Vending Committees (which comprises the local authorities and vendors from an area) issue a certificate of vending after a survey has been conducted.
- To check whether you have been surveyed, check the ministry of housing website.
- Then you can approach a Banking Correspondent (BC)/ Agent of Micro Finance Institution (MFI) in your area (ULBs will have the list of these persons). They will help you in filling up the application and upload the documents in a Mobile App/ Portal.
- But if the cities have not conducted the survey then the Town Vending Committees (which comprises the local authorities and vendors from an area) issue a certificate of vending after a survey has been conducted.
- Requirements for an LOR vary, with many ULBs asking for any proof of vending, including even a photo of a vendor at the spot.
- These documents, including the identification proof, are uploaded on a special portal made for the scheme, and the loans are sanctioned by banks and disbursed, ideally, in 10-15 days.
- The loan of Rs 10,000 can be availed collateral free with a tenure of 1 year and repaid as monthly installments.
- Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Cooperative Banks, Non-Banking Finance Companies (NBFCs), Micro Finance Institutions (MFIs) & SHG Banks established in some States/UTs e.g. Stree Nidhi etc. are eligible to lend under the scheme.
- If paid earlier, an interest subsidy of 7% per annum will be credited to the bank accounts of beneficiaries every quarter.
- Monthly cashback to incentivise digital transactions. On executing 50 eligible transactions in a month: Rs 50; Rs 75 for 100 eligible transactions and Rs 100 for 200 eligible transactions.
In case of grievance, contact
Ministry: Director (NULM),
Room no.334-C, Ministry of Housing & Urban Affairs,
Nirman Bhawan, Maulana Azad Road,
New Delhi – 110011 e-Mail: email@example.com Tel: 011-23062850.0