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Shri Durga Shanker Mishra, Secretary , Ministry of Housing and Urban Affairs today launched Letter of Recommendation (LoR) module  for PM SVANidhi Scheme. The module is designed to give access to street vendors who do not have Identity Card (ID) and Certificate of Vending (CoV) and are not in the surveyed list for availing benefits under the scheme. The module provides for an end to end digitally enabled process wherein an eligible vendor can request for a Letter of Recommendation from the Urban Local Body and on receipt of the same he/ she can apply for the loan under PM SVANidhi.

For applying for the LoR from ULB through the online module on PM SVANidhi portal, a vendor needs to possess any one of the documents, viz. (i) Proof of availing one -time assistance, provided by certain States /UTs, during the period of lockdown; or (ii) The membership details with the vendors’ associations; or (iii) Any other documents to prove that he is a vendor. Further, a vendor can also request ULB through a simple application on white paper to conduct local enquiry to ascertain the genuineness of the claim as vendor. ULBs will have to dispose of the request for issue of LoR within a period of 15 days.

The vendors possessing LoR will be issued Certificate of Vending / ID Card within a period of 30 days.  This provision will help in extending reach of the Scheme to the maximum number of beneficiaries. 

Since commencement of online submission of loan applications on PM SVANidhi portal on 2nd July 2020, more than 4.45 lakh applications have been received and over 82,000 have been sanctioned in different States and UTs.  With the purpose of taking the microcredit facility to the door step of the vendors a mobile app for Lending Institutions has already been launched by the Ministry and is available on google play store.

PM SVANidhi was launched by the Ministry of Housing and Urban Affairs, on June 01, 2020, for providing affordable Working Capital loan to street vendors to resume their livelihoods that have been adversely affected due to Covid-19 lockdown. This scheme targets to benefit over 50 lakh Street Vendors who had been vending on or before 24 March, 2020, in urban areas including those from surrounding peri-urban/ rural areas. Under the Scheme, the vendors can avail a working capital loan of up to ₹ 10,000, which is repayable in monthly instalments in the tenure of one year. On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will be credited to the bank accounts of beneficiaries through Direct Benefit Transfer on quarterly basis. There will be no penalty on early repayment of loan. The scheme promotes digital transactions through cash back incentives up to an amount of ₹100 per month. The vendors can achieve their ambition of going up the economic ladder by availing the facility of enhancement of the credit limit on timely/ early repayment of loan.

https://pib.gov.in/PressReleasePage.aspx?PRID=1644049

Letter of Recommendation module launched to include vendors who don’t have Identity Card and Certificate of Vending under PM SVANidhi
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