Rs 10,000 Loan to be Given to Street Vendors to Restart Work 2020-21 [How to Apply, Portal, Eligibility Criteria, Form, Documents, Credit Card, Amount, Interest, Loan Repayment, Lock in Period ]
The Prime Minister of India, during his last public address hinted at a possible fourth lockdown. The country is already in a financial crisis. However, similar conditions prevail in most developing countries, which are fighting the Coronavirus pandemic. Medical experts at WHO have already opined that the virus is here to stay. It is impossible for any government to opt for an unending lockdown. It will hamper the entire financial and demand-supply mechanism of the nation. The Prime Minister announced Atmanirbhar Bharat Abhiyan, there by injecting Rs. 20 lakh crore in the Indian economy. The Finance Minister explained the various schemes measures, which will be taken to offer respite to the people. During the official speech, the Finance Minister talked about Street Vendor 10000 Loan Scheme. As the name suggests, the scheme has been targeted towards the street vendors, who have lost their livelihood, due to COVID – 19 pandemic. If you desire to know more about this scheme, then read this article carefully.
|Name of the scheme||Street Vendor 10000 Loan Scheme|
|Launched by||Narendra Modi|
|Announced by||Nirmala Sitharaman|
|Date of announcement||14th May 2020|
|Date of implementation||Soon|
|Target beneficiaries||Hawkers, cart owners, small shop owners, street vendors|
|Application process||Online registration|
Key features of the scheme
- Financial security – The primary objective of this project is to give financial security to the eligible applicants, which are under too much financial stress, due to the loss of their livelihoods.
- Credit amount – The applicant will be able to obtain as much as Rs. 10,000 as loan, for resetting the business.
- Frequency of payment – The applicant will be able to apply for the Street Vendor 10000 Loan Scheme once during or after the lockdown.
- Mode of payment – The special credit sum will be deposited in the bank account of the beneficiary. Direct Benefit Transfer mode will be used for this purpose.
- Interest rate charged – The Finance Minister has not said anything about the interest rate that will be charged on the credit.
- Loan range – The Finance Minister also said that a beneficiary will be able to apply for a minimum credit sum of Rs. 2000. However, the upper limit of the credit amount is Rs. 10,000.
- Total beneficiary count – The reports, issued by the central government highlight that around 50 million street vendors, hawkers, and road side shop owners operate in India. These individuals will be offered this special credit.
- Budget allocated for the scheme – During the official announcement, the Indian Finance Minister stated that the overall budget that has been allocated for the implementation of this project, is Rs 5000 crore.
Eligibility for the applicants
- Residents of India – Only those applicants will be considered eligible for this program, which are legal residents of the country.
- Hawkers – The hawkers will be able to enroll for this scheme and obtain the financial assistance.
- Street vendors – The scheme will include the stress vendors in this program.
- Owners of roadside stalls – If the applicant owns a small road-side stall, then he will be able to register for this special credit scheme.
Documents necessary for application
- Residential documents – The submission of the residential documents is also important.
- Identification documents – All the applicants need to upload the scanned copy of the Aadhar Card for aiding the verification process.
- Employment certificate – The hawkers, street vendors, which have the certificate, issued by the Hawkers Association, will get the credit benefit. Those, who do not have this document can apply and get it easily.
- Bank account details – It is necessary for the applicant to attach the scanned copy of the first page of the account passbook. It will provide the relevant bank account related details, necessary for completing the money transfer.
How to resister for the financial assistance scheme?
The central government ministers have given a detailed account what the new project has in store for the target beneficiaries. Apart from the features, the Finance Minister also mentioned the eligibility criteria. She said that the central government will soon launch a new portal, through which the interested candidates will be able to apply for this loan. When the website will be launched, the central government will make the announcements, thereby shedding light on the application process. We will keep a close watch on the scheme related developments. You will obtain the updated details about this project on our portal.
FAQ about the scheme
- Will the central government sponsor this project?
Ans: Yes. The Indian Central government will sponsor this scheme.
- Is this scheme open for medium scale shop owners?
Ans: No. Only road side stall owners, hawkers and vendors will be able to apply for the credit.
- How much interest rates will the financial institutes charges on the loan?
Ans: Nothing has been mentioned about the rate of interest that will be levied on the loan.
- Will every applicant get Rs. 10,000?
Ans: No. The applicant is entitled to receive anything between Rs. 20,000 and Rs. 10000 for revival of their business.
- What is the overall budget of this scheme?
Ans: Rs 5000 crore has been set aside for the implementation of this credit assistance program.
- When will the government start the registration process?
Ans: The Finance Minister opines that the registration as well as the distribution of the credit will begin from next month.
- Is this project a part of the Atmanirbhar Bharat Abhiyan?
Ans: Yes. The Street Vendor 10000 Loan Scheme has been announced under the Atmanirbhar Bharat Abhiyan.
- Why has the central government opted for a portal-based registration process?
Ans: The online enrollment process will make it easy for the applicants to fill-up and submit the registration form, without stepping out of their homes.
The financial conditions of the stress vendors and hawkers have taken a massive blow. Even if they go out with their carts, the lack of people on the stress will prevent them from making a significant sale. These individuals do not have a lot of financial support to fall back on. Thus, timely credit will not only offer money to these applicants, but will be able to help gain normalcy, after the lockdown is called off.
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