New Economic Package: Centre to provide up to Rs 10,000 as Working Capital & Support 50 Lakh Street Vendors

Following Prime Minister’s call for Atmanirbhar Bharat and 4.0 nationwide lockdown, a special scheme will be launched within a month to facilitate easy access to credit to Street vendors, who are amongst the most adversely impacted by the present situation for enabling them to restart their businesses.

Rs 5,000 crore Credit facility for Street Vendors amid Corona Crisis

Under this scheme, the bank credit facility for initial working capital up to Rs. 10,000 for each enterprise will be extended. This scheme will cover urban as well as rural vendors doing business in the adjoining urban areas. Use of digital payments and timely repayments will be incentivized through monetary rewards. It is expected that 50 lakh street vendors will be benefitted under this scheme and credit of Rs. 5,000 crore would flow to them, says PIB reports.

"There has been an adverse impact on the livelihoods of street vendors because of COVID-19. The government will launch a special scheme within a month to facilitate easy access to credit to street vendors," Finance Minister Nirmala Sitharaman said.

The Scheme will provide up to Rs 10,000 as Working Capital & Support 50 Lakh Street Vendors

The scheme will provide up to Rs 10,000 as working capital and will support nearly 50 lakh street vendors, she added.

The government also said that those accepting digital payments will receive monetary rewards and more credit based on good repayment behaviour.

The credit line for street vendors is part of the government's Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi on Tuesday.

Announcing details of the package for the second day on Thursday, Nirmala Sitharaman announced measures to help migrant workers, street vendors, small traders and farmers.