According to an official statement made by the government on Wednesday, it has received over five lakh applications under the PM SVANidhi scheme which aims to provide street vendors loans of up to Rs 10,000 to restart their business post the COVID-19 lockdown.
The Union Housing and Urban Affairs Ministry said the PM Street Vendor's AtmaNirbhar Nidhi scheme has generated considerable enthusiasm.
The number of loans sanctioned and applications received under 'PM SVANidhi' scheme have crossed one lakh and five lakh respectively within 41 days of commencement of the lending process.
Under the scheme, vendors can avail a working capital loan of up to Rs 10,000 which is repayable in monthly installments in a year.
"The PM SVANidhi envisages bringing 'banks at the door steps' of these 'nano-entrepreneurs' by engaging the non-banking financial companies (NBFCs) and the micro-finance institutions (MFIs) as lending institutions in addition to scheduled commercial banks -- public and private, regional rural banks, cooperative banks, SHG banks etc," the statement said.
Onboarding vendors on digital payment platforms is a very important component to building their credit profile and help them become part of the formal urban economy, it stated.
Last week, the ministry had launched the "Letter of Recommendation module" through which street vendors, who don't have identity cards or certificate of vending, can also avail benefits under the scheme.