PM Modi reviews implementation of micro-credit scheme for street vendors

He said that the scheme should not be just seen from the perspective of extending loans to street vendors.

Prime Minister Narendra Modi on Saturday reviewed the implementation of a special micro-credit facility for street vendors, stressing that it should not be seen from the perspective of extending loans to them but as part of an outreach for their holistic development and economic uplift.

The PM Street Vendor's Atmanirbhar Nidhi (PM SVANidhi) aims at facilitating a collateral free working capital loan of up to Rs 10,000 of one-year tenure, to help street vendors resume their businesses post lockdown.

The review meet was informed that over 26 million applications have been received, over 64,000 have been sanctioned and over 5,500 have been disbursed.

The prime minister expressed satisfaction on the use of end-to-end IT solution through a web-portal and mobile application for administration of the scheme to ensure transparency, accountability and speed, an official statement said.

While noting that the Ministry of Housing and Urban Affairs is working on a complete IT solution, including mobile application, for seamless implementation of the scheme, the prime minister said that its design should incentivise use of end-to-end digital transactions by the street vendors.

This should cover the entire gamut of their business - from procurement of raw material to collection of sale proceeds. Appropriate incentives and training should be held for the purpose. Use of digital payments would also help build a credit profile for the street vendor helping them in future financial needs, Modi observed.

He said that the scheme should not be just seen from the perspective of extending loans to street vendors.

It should also be seen as a part of an outreach to the street vendors for their holistic development and economic uplift, the statement quoted Modi as saying.

One step in this direction would be by capturing their entire socio-economic details to facilitate necessary policy interventions.

Such data could also be used by different central ministries to benefit them under various schemes for which they are eligible, on a priority basis.

These include housing under PMAY-U, cooking gas under Ujjawala, electricity under Saubhagya, health under Ayushman Bharat, skilling under DAY-NULM, and bank account under Jan Dhan scheme, the statement said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel