Credit: Special Arrangement.
Street vendors in the city and state can now access loans under the PM SVANidhi scheme following a recent meeting with the BBMP and other senior officials, which directed banks to assist vendors with their loan applications.
IAS officers convened a meeting with banks, BBMP officials, and members of the street vendors association at the Vikasa Soudha on Thursday. The purpose was to instruct banks to provide loans of Rs 10,000, Rs 20,000, or Rs 50,000 to street vendors after obtaining approvals from the urban civic bodies across the state.
One-year validity
These working capital loans will remain valid for one year and will not require any collateral. Repayment will be in the form of monthly instalments. Initial applicants across the state will be eligible for Rs 10,000. After full repayment by the end of the year, they will qualify for an increased loan amount of Rs 20,000 for the second year, and Rs 50,000 for the third year.
"Every month, street vendors will have to repay Rs 850 to Rs 900, Rs 1,800, or Rs 2,500 for loans of Rs 10,000, Rs 20,000, and Rs 50,000, respectively," C E Rangaswamy, state president, Karnataka Beedhi Badhi Vyaapari Sanghatanegala Okkuta, told DH.
ID card required
Street vendors are required to display their government-issued ID cards permitting vending. Alternatively, if they do not have these cards, they can provide their Aadhaar cards and bank account details linked to their mobile numbers, he added.
Rangaswamy explained that all-women teams have been deployed across the state to assist vendors with their loan applications.
"These teams will visit each area with street vendors and obtain their details. After approvals from the local BBMP authorities in the city, the vendors can visit a bank to sign a few forms and avail their loans,” he explained.
On Friday, Rangaswamy informed street vendors about the scheme's benefits and encouraged them to apply or reapply if their initial applications had been rejected. He also urged them to repay their loans promptly to become eligible for higher sums if needed.