Street vendors invited to apply for a working capital loan

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TIRUVARUR

Street vendors operating in urban local organizations have been urged to contact the respective civic organizations to apply for the working capital loan under the AtmaNirbhar Nidhi (PM SVANidhi) program of the Prime Minister of Street Vendors.

In a press release released here on Thursday, collector T. Anand called on street vendors who have received the Certificate of Sale (CoV) from the city’s sales committee to approach the municipal or municipal Panchayat offices of the district to apply. for 10,000 offered as a working capital loan through the PM SVANidhi program.

The prescribed application form can be downloaded from pmsvanidhi.mohua.gov.in website and the completed application file submitted to the civic organization’s offices for processing.

Stating that the loan was to be repaid in 12 monthly installments, the collector said that it was not necessary to provide collateral security for the loan and that there would be no prepayment penalty. In addition, early or early repayment would make borrowers eligible for an enhanced loan amount in the next disbursement cycle of the working capital loan, he added.

Borrowers could also receive around 1,200 per year as a “reward” if they opt and continue their business through the digital transaction mode. Vendors who did not get the CoV could go to the respective civic body within which they were doing business and apply for the CoV, he added.

Those who sell vegetables, fruits, ready-to-eat street food, tea, pakodas, bread, eggs, textiles, clothing, shoes, handicrafts, books / stationery and who offer services such as shoe repair, laundry services and pot sales are eligible for the working capital loan with a 7% interest subsidy component.

The interest subsidy would be available until March 31, 2022 and would be credited quarterly to the borrower’s account. The interest subsidy facility would be available on the first subsidized loan and subsequent loans until March 31, 2022, and would be credited all at once for prepayment.

Since the COVID-19 pandemic and the resulting closures have negatively impacted the livelihoods of street vendors who represent a very important component of the urban informal economy where they ensure the availability of goods and services. affordable services at the doorstep of city dwellers. , the Ministry of Housing and Urban Affairs has accelerated the implementation of the program in urban civic bodies in states such as Tamil Nadu, where the rules and program under the 2014 Street Vendors (Protection livelihood and street vending regulation) had been notified.

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