Hela July 2, 2019

Most city vendors running business on micro-finance

Chandigarh

The arrest of Sheetal Sharma in a road rage incident recently has brought to fore small businesses running in the city through micro-financing.

Sheetal was also in micro-financing and she probably kept the rod in her car because of her profession. The same rod was used to hit the motorist in the road rage incident.

A large number of street vendors in the city are running their business with the help of micro-finance from private people who either take commission for lending money or get profit share from the individual running small business. Many street vendors selling fruits and vegetables, clothes and other household items are running their business through micro-finance.

Mani Ram, a fruit vendor at Dhanas and a native of Bihar, came to the city with hardly Rs 5,000 with a dream to start his own business. Someone told him about a micro-financer who helped Mani Ram in purchasing a cart and starting his own business.

“I give a share of my profit to the lender who lives in Dhanas only,” said Mani Ram.

Autos are another booming business in the city for migrants involving micro-finance. A majority of the auto drivers in Chandigarh are from either Uttar Pradesh of Bihar and they have been running autos on rent.

“I give Rs 400 per day to the auto’s owner on a daily basis, while the money that I earn by ferrying passengers is mine,” said Lakshmi Kant, who has been driving auto in Chandigarh for the past five years.

Sources said either these autos were owned by small rank police personnel, other government employees or people running small businesses.

Dilip Singh, a vendor in Sector 22, who is also into micro-financing for the past several years, claimed that a large number of vendors in Sector 17, Sector 19 and Sector 22 are running their businesses through same modus operandi.

“Vendors bring products from shopkeepers. At the end of the day, they return the product which is not sold. After calculating their own profit, the vendor pays for the sold items to the shopkeeper,” he said.

A police official, not wishing to be named, said micro-financing is something that is between the lender and the receiver.

“All these things are done confidentially, without involving any third person,” the cop said.

Usually there are no complaints of micro-financing. However, when there is a dispute after the receiver refuses or fails to repay the money then complainant party just claims that money was lent on good faith without any interest.

Vendorspeak

Dilip Singh, a vendor in Sector 22, who is also into micro-financing for the past several years, claimed that a large number of vendors in Sector 17, Sector 19 and Sector 22 are running their businesses through same modus operandi.

[“source=tribuneindia”]