Telangana: Street vendors to get SHG-style support under urban scheme
Telangana will form Common Interest Groups for street vendors to promote savings and access to bank loans. Under MEPMA, 10–12 vendors per group will be monitored before bank linkage. The move aims to curb dependence on private moneylenders
Karimnagar: Street vendors in Telangana will soon be organised into Common Interest Groups (CIGs), similar to women self-help groups, under the National Urban Employment Scheme.
The initiative aims to promote saving habits and facilitate access to bank loans. A survey by the Mission for Elimination of Poverty in Municipal Areas (MEPMA) has identified street vendors engaged in various businesses like running tea stalls, fruit shops, flower sale units and pani-puri bandis.
According to MEPMA officials, each CIG will consist of 10 to 12 members. Bank accounts will be opened in the names of group members to encourage regular savings.
After monitoring their financial transactions for six months, banks will extend linkage loans. This is expected to reduce vendors’ dependence on private moneylenders and help expand their businesses.
Many vendors rely on daily financers who charge high interest, typically 3 to 5 percent, forcing vendors to part with a major portion of their daily earnings.
Earlier, street vendors received relief through the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme. Loans of Rs 10,000, Rs 20,000, and Rs 50,000 were disbursed in three phases. Although the scheme has ended, some vendors continue to repay the installments.
The new CIG-based support system is expected to provide a structured and sustainable financial alternative for urban street vendors.
