Page 36 - BF Cover January 2021.cdr

ARTICLE

ii. 50% of members (including chairperson) from local account quarterly
authority departments, police and street vendors & Y Lenders will submit quarterly claim of subsidy for the
traders association etc quarters ending June 30, September 30, December 31
iii. 40% of vendors representing street vendors and March 31 during each financial year
iv. 10% of members nominated from NGOs/CBOs Y Only standard accounts will be considered for subsidy
on respective claim dates and only for those months
Vendors went back to native places due to during which the account has remained standard in the
concerned quarter
Covid-19
Y Such vendors even if they are from rural/semi-urban Y The interest subsidy is available up to 31st March 2022
area or City dwellers, would be eligible for the loan once " The subsidy will be available on first and subsequent
they return back after normalization of the situation enhanced loans up to that date
and resume their business.
" In case of early payment, the admissible amount of
subsidy will be credited in one go
Features of the Product
Y Urban street vendors can avail a working capital loan Promotion of Digital Transactions by
of up to Rs 10000.00, which is repayable in monthly
installments within one year Vendors
The scheme incentivizes digital transactions by the street
Y No collateral security is required
vendors through monthly cash back
Y One time or early repayment, the vendors will be i. Cash back incentive is available for digital transactions
eligible for the next cycle with an enhanced limit
ii. The network of lending institutions and digital payment
Y No prepayment penalty charges from vendors aggregators like NPCI (for BHIM), PayTM, GooglePay,

Rate of Interest

Types of Banks / Scheduled commercial Banks, NBFC, NBFC-MFIs etc. MFIs (non NBFC) & other
FIs RRBs, Small Finance Banks, lender categories not covered
Cooperative Banks & SHG Banks under the RBI guidelines
Rate of Interest As per prevailing rates of interest As per RBI guidelines Interest rates under the scheme
for the respective
lender category
BharatPay, AmazonPay, PhonePe etc. will be used to
Interest Subsidy onboard the street vendors for digital transactions.

Y The vendors availing loans under the scheme are iii. The onboarded vendors would be incentivized with a
eligible for interest subsidy @7% monthly cashback in the range of Rs 50.00 - Rs 100.00

Y The interest subsidy will be credited into borrower's as per following criteria

No of transactions On executing 50 eligible On executing the next 50 On executing the next
transactions in a month additional eligible additional 100 or more
transactions eligible transactions
Incentive Rs 50.00 Rs 25.00 (On reaching 100 Rs 25.00 (On reaching 200
eligible transaction eligible transactions
Rs. 50+25= Rs 75.00) Rs 50+25+25=Rs 100.00)

Note: Eligible transaction means: A digital payout or receipt with minimum value of Rs 25.00

36 | 2021 | JANUARY | BANKING FINANCE