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Rs 5,000 crore special credit facility to support 50 lakh street vendors: FM

The government will launch a special scheme within a month to facilitate easy access to credit to street vendors, says FM Sitharaman

twitter-logo BusinessToday.In   New Delhi     Last Updated: May 15, 2020  | 00:27 IST
Rs 5,000 crore special credit facility to support 50 lakh street vendors: FM
Initially working capital up to Rs 10,000 will be provided under the scheme

Finance Minister Nirmala Sitharaman on Thursday announced a Rs 5,000 crore special credit facility for street vendors as part of the economic package to mitigate the economic impact of the coronavirus crisis and the nationwide lockdown. The government will provide special credit facility to support nearly 50 lakh street vendors, whose livelihoods have been adversely impacted by COVID-19, FM Sitharaman said while addressing her second tranche of economic package.

"The government will launch a special scheme within a month to facilitate easy access to credit to street vendors," FM Sitharaman said.

Initially working capital up to Rs 10,000 will be provided under the scheme, she said, adding that those accepting digital payments will receive monetary rewards and more credit based on good repayment behaviour.

"Digital payment will be incentivised through monetary rewards and working capital credit would be available for good repayment behaviour," FM said.

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

Also Read: Free food grain supply to 8 crore migrants for next 2 months, says FM

Unveiling the second round of economic package, FM Sitharaman announced slew of measures to help migrant workers, street vendors, small traders and farmers.

The government will spend Rs 3,500 crore to provide free food grains to 8 crore migrant workers for the next two months, while affordable rental housing complexes (ARHC) will be launched for migrant workers and urban poor.

Also Read: Over Rs 4 lakh crore loan disbursed to 3 crore farmers under PM-KISAN, says FM

In a bid to benefit around 3 crore farmers the government has announced Rs 30,000 crores additional emergency working capital funding through NABARD. Besides, 63 lakh loans worth Rs 86,600 crore have been approved in the agriculture sector between 1st March and 30th April. The government has provided support of Rs 4,200 crore under rural infrastructure fund to states during March for rural infrastructure development, FM said in her press briefing.

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