Banks approve loans only to 532 street vendors under PM Swanidhi

Aurangabad, Dec 23:

The PM Street Vendors Self-Reliance Fund (PM Swanidhi) scheme that was launched to empower street vendors by providing them free working capital loans of up to Rs 10,000, to help resume their businesses has proved a big disappointment as only 532 street vendors from the 6,900 have received loans from banks.

Street vendors found themselves in financial crisis as businesses closed during the Corona period. The central government on June 1, 2020 launched the PM Swanidhi scheme to empower vendors by not only extending loans to them but also for their holistic development and economic upliftment. The scheme intends to facilitate collateral-free working capital loans of up to Rs 10,000 of one-year tenure, to approximately 50 lakh street vendors, to help resume their businesses in the urban and rural areas. The implementation of this scheme has been entrusted to the municipal corporation at the city level. Accordingly, the corporation invited online applications from street vendors for loans. In all, 6,900 street vendors from the city submitted applications. These applications were sent to various banks in September. Within three months, only 532 street vendors in the city have received loans from banks. Banks have not yet given loans to the remaining vendors.

Responsibility of municipal corporation

According to bank officials, the municipal corporation surveyed street vendors in the city. According to the survey, there are 14,500 street vendors in the city. The vendors require licence and permission from the corporation. However, the municipal corporation has not issued any of the necessary documents. As a result, many have not been able to get loans.