Hawkers, street vendors in Delhi to get easy loans up to Rs 20,000

NEW DELHI: Delhi government will provide loans up to Rs 20,000 to street vendors and hawkers. It will help them revive their businesses, which have been battered by the Covid-19 pandemic.
“It will be a permanent arrangement and will continue even after the pandemic is over. Street vendors and hawkers will be provided the loan at a low interest. A policy is being made for the purpose,” social welfare minister Rajendra Pal Gautam said.
Hawkers and street vendors were not permitted from March-end till July and only those engaged in the sale of essential items like vegetables and fruits could manage to continue their trade with much difficulties.The pandemic has badly affected them, leaving many of them with survival challenges. Most of them do not even have any savings left.
Towards the end of the last month, Delhi government allowed street vendors and hawkers to restart their work and businesses. Lieutenant governor Anil Baijal approved the proposal to allow street vendors and hawkers. From August 1, street hawkers were permitted to operate from 10 am to 8 pm every day with social distancing and all other precautionary measures in place.
Delhi has over 5 lakh street vendors. The number of vendors registered with civic bodies is, however, far less.
Delhi SC, ST, OBC, Minorities and Handicapped Finance and Development Corporation (DSFDC) will be providing loans to the street vendors at low interest rates. The process of providing loans has been simplified and there is no need for collateral or guarantor to avail the loan. “The decision has been taken because during the crisis, the street vendors are left with no option but to approach the money lenders who charge exorbitant interest,” said an official.
Gautam said that the easy availability of the loans will help the street vendors re-establish their businesses and earn a living in a dignified way.
The policy is still in the works, but an official said that the process to get the loan would be simple and there would be no requirement of collateral, or guarantor. “After someone makes a request for loan, a simple verification will be carried out to check the person’s credentials. The person should be a resident of Delhi. After the general verification, the loan will be disbursed,” said an official. The rate of interest is yet to be decided, but it will be very low, the official added.