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Street vendors play important role in Uttar Pradesh’s economy: India’s PM

India's Prime Minister Narendra Modi looks on at the ASEAN-India Summit on the sideline of the 35th ASEAN Summit in Bangkok, Thailand, 3 November 2019 (Photo: Reuters/Athit Perawongmetha). Sketched by the Pan Pacific Agency.

NEW DELHI, Oct 27, 2020, FE. Prime Minister Narendra Modi today said that street vendors have a major role to play in the economy of Uttar Pradesh and the maximum applications for the microcredit facility under the PM SVANidhi scheme has come from UP, Financial Express reported.

Narendra Modi added that the government has so far received nearly 25 lakh applications, out of which 12 lakh applications have been approved. PM Modi further said that over 6.5 lakh applications are from Uttar Pradesh. At the interaction with PM SVANidhi Scheme beneficiaries of Uttar Pradesh, the Prime Minister also apprised that stamp duty on loan agreements under the scheme has also been waived off.

Citing the woes of poor and street vendors, the PM said that, earlier, even the employed workers had to bear the pain while applying for loans and the weaker sections could even think of stepping into the banks. However, now the banks are themselves coming to the needy and the poor can avail of loans hassle-free. He attributed the efforts of the banks and bankers to the success of hassle-free loans.

The Prime Minister highlighted that when coronavirus hit India, there were many speculations about the livelihoods of the poor in India. However, recalling the PM Garib Kalyan package worth Rs 1.7 lakh crore, he added that the government rolled out measures to decrease the pain of the poor. It is to be noted that the PM SVANidhi scheme was aimed at helping poor street vendors impacted by Covid-19 in resuming their livelihoods. The scheme was among the various measures taken to keep the wheels of the informal economy turning.

Meanwhile, under the PM SVANidhi scheme, street vendors could get a working capital loan up to Rs 10,000 at a subsidized rate of interest. The government also incentivized regular repayment of the loan and rewarded digital transactions. The government had underlined that an interest subsidy of 7 per cent will be credited back to the beneficiaries who repay timely while the vendors could also avail the facility of the increased credit limit on timely repayment. It was for the first time that the government brought schemes or relief measures for the street vendors of the country.

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