Street vendors will get working capital loans of up to ₹10,000 to restart business
Digital payments will be incentivised through monetary rewards and enhanced working capital credit would be made available for good repayment behaviour
NEW DELHI :
Crisis-hit street vendors will get working capital loans of up to ₹10,000 to restart business under a scheme the government will roll out in a month, Union finance minister Nirmala Sitharaman said on Thursday.
Announcing steps to ease the pain of loss of livelihoods, Sitharaman said street vendors whose livelihoods were affected on account of the lockdown can use this facility to restart their business.
“Within a month, the government will announce a scheme that will facilitate easy access to credit for street vendors. There are 50 lakh street vendors as per one estimate from states. They can buy products to sell. They will be taken care of," she said.
For the working capital scheme, “We expect a liquidity of ₹5,000 crores to be made by government," the minister said.
An official presentation on the relief measures announced by Sitharaman said digital payments will be incentivised through monetary rewards and enhanced working capital credit would be made available for good repayment behaviour.
“The easy credit facility of ₹5,000 crore to all street vendors and interest subvention support of 2% under Mudra-Shishu loans of ₹50,000 or less for next 12 months will help vendors and businesses to resume their activities post lockdown," said D.K. Aggarwal, president of PHD Chamber of Commerce and Industry, an industry body.
The relief measures come in the wake of a humanitarian crisis that saw large-scale return of migrant workers from urban centres to villages unseen in recent times.