PM street vendors' loan scheme elusive for many in Bengaluru

A week after IAS officers held a meeting to help street vendors secure loans under the PM SVANidhi Scheme, many intended beneficiaries are still unaware of the initiative. The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme was announced in June 2020.

The agenda of the meeting in Bengaluru, with BBMP and bank officials in attendance, was to urge banks to speed up the process of sanctioning loans for vendors.

Camps being held

After the meeting last week, some banks have started holding awareness campaigns for vendors. Canara Bank, for instance, held camps at Gundu Rao Sports Complex, Malleswaram, and the BBMP office in Dasarahalli. About 200 vendors attended the camp at Malleswaram.

First-time applicants are eligible for loans of Rs 10,000. On paying it back within one year, they can apply for Rs 20,000. Once this is paid, they will be eligible for amounts of up to Rs 50,000.

C E Rangaswamy, who sells children’s clothes, got the Rs 10,000 loan two years ago and it has helped him develop his business. As the president of the Karnataka Beedhi Badhi Vyaapari Sanghatanegala Okkuta, he has also helped a few other vendors get loans. “A vegetable seller, with an infant, approached a bank in Thimmaiah Layout, but didn’t get help. I then called BBMP and senior officials from the bank and helped her get the loan,” he reveals. The validity of the government-issued ID cards for vendors and their vending certificates, requirements for loan application, lapsed earlier this year, says Rangaswamy. They are awaiting renewal. In the meantime, banks are accepting letters of recommendation from zonal officers.

Multiple challenges

“I have not heard of this scheme. If there is such a scheme, it will help me buy more material and earn more money,” says Mohammed
Nadeem, a vendor who sells watches and hats in Hebbal.

Dinesha, a fruit seller in Ramachandrapuram, feels simplifying the process might make it less intimidating. “These things are too complicated and I don’t want to get involved in anything I don’t understand,” he shares.

According to Babu S, president of the Federation of Bengaluru District Street Vendors Union, sellers have been facing multiple obstacles while applying for a loan. Some face language barriers, others are made to run around to get signatures and documents, some are treated poorly. “Most give up and return home. Spending hours at the bank means losing out on business,” he explains.

How to apply

A bank official outlines the steps. “A BBMP or urban local body official will identify the vendors eligible for the scheme. If they do not have a bank account, they can open one. After this, they can approach the bank with a letter of recommendation from the BBMP. The bank will then sanction or reject the application,” he says.

Street vendors are also given QR codes. The money from sales goes to their account and the EMI is deducted automatically. If an official has not paid them a visit, vendors can approach the local BBMP office to apply. They also have the option to apply on  pmsvanidhi.mohua.gov.in. In Bengaluru, 82,000 loans have been approved so far, the bank official says.

(With inputs from Asra Mavad and Samanvita Mahesh)