MP Government to give interest free loan to rural street vendors


Mass loan distribution programme for the fourth time

Bhopal, Feb 17

Chief Minister Shivraj Singh Chouhan will distribute loans to rural street vendors on February 18 to enhance their livelihoods. Chief Minister Chouhan will also interact with the beneficiaries of the scheme in a virtual programme to be held at 12 noon in Minto Hall, Bhopal. For the fourth time under the Chief Minister Rural Street Vendor Scheme, loan is being distributed simultaneously to the beneficiaries.

The state’s Panchayat and Rural Development Minister Mahendra Singh Sisodia and the Minister of State Ramkhelawan Patel will also be present in the programme.

In the Chief Minister Rural Street Vendor Scheme under the Panchayat and Rural Development Department, till now more than one lakh rural migrant labourers and other needy street vendors have been benefitted by giving interest free loan of Rs 10 thousand each to them on the guarantee of the state government.

The objective of the scheme is to cooperate in providing bank loans of up to Rs. 10 thousand to street vendors in rural areas in the form of working capital loans, to encourage regular loan repayment and help small entrepreneurs get training in business and trades. Under the scheme, there is a provision of reimbursement of 14 percent interest subsidy on loans up to Rs 10 thousand per beneficiary by the state government. Also, the state government will provide credit guarantee in the scheme. The eligible beneficiaries of this scheme have also been exempted for the purposes of stamp duty.

Under the scheme, the benefits of the scheme are given to rural migrant workers, poor families and women belonging to such families in rural areas who are members of self-help groups formed in the Aajeevika Mission or Tejaswini Project. There is no restriction of educational qualifications and caste or class in the scheme.

To make the scheme simple and transparent, Kamgar Setu Portal has been created. So far, more than 14 lakh 15 thousand beneficiaries have been registered through the Kamgar Setu portal. Out of these, loan cases of more than 1 lakh 41 thousand beneficiaries have been approved by the banks and more than 1 lakh cases are ready for distribution. Out of these, the loan amount has been distributed to more than 60 thousand beneficiaries by the Chief Minister Chouhan in the virtual mass loan distribution programmes organised on September 24, November 12 and December 21, 2020. In the programme to be held for the fourth time on February 18, the loan will be disbursed to more than 40 thousand street vendors simultaneously.


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