Roadside vendors to get loans at 6% interest

NEW DELHI: The Delhi government is coming up with a new scheme to give loans to the roadside vendors with only six per cent interest.

The loan amount will be Rs 20,000, of which Rs 10, 000 would be a subsidy.

Social welfare minister Rajendra Pal Gautam has thought out this plan and plans to make it official within this financial year.

"I know that these roadside vegetable vendors and other such small business owners suffer from a monetary crisis and we want to give them support," said Gautam.

The minister added that these vendors take loans from local 'Mahajan' at a very high-interest rate.

"These people do not get basic facilities and the loan pressure adds to their struggle," he said.

The department is planning to give them a loan so that they can build up their business much better.

"In this scheme, they will not need any paper or verification of shops because they do not have those. But we will come up with our own process to check the applications," he said.

He also added that every vendor will get Rs 20,000 as a loan.

"They will not give us interest on that money because the Rs 10,000 would be just subsidy so in remaining money they will give the interest. Which is very nominal," he said.

The minister said that the department is looking at all the aspects of the scheme and based on that the government will take the decision. The department is likely to make the action plan by this month so that the whole process can be started soon.

"We will make various camp offices across the city from where the loans will be distributed. I hope this scheme will be very much helpful for these people," said Gautam.

The minister and the department are likely to make the final decision regarding the plan by this month.