If you are a small businessman or a street vendor and are looking for a way to overcome financial difficulties, then a special scheme of the government can prove to be helpful for you. Under this scheme, you can get a loan without any guarantee. Let us know about it in detail.
What is Pradhan Mantri Swanidhi Yojana?
Pradhan Mantri Svanidhi Yojana (PM Svanidhi Yojana) was launched in 2020. Its objective is to provide financial strength to small businessmen and street vendors after the COVID-19 pandemic and help them restart their business.
How to avail the benefit of the scheme?
Under this scheme, you can take a loan without any guarantee through Aadhar card. The process is very easy and straightforward, through which small traders can strengthen their business again.
Also read: UP government’s special scheme, BPL families get financial help in ’emergency’; how to apply
Loan up to ₹ 50,000 is available
Under the PM Swanidhi Yojana, initially a loan of up to ₹ 10,000 is given to the traders. If they repay this loan on time, then next time they can get a loan of up to ₹ 20,000. After this, this amount increases to ₹ 50,000 if the previous loan is repaid on time.
Aadhaar card is necessary
Aadhar card is mandatory to get loan under this scheme. Traders can apply in government bank using Aadhar card. This loan has to be repaid in installments in 12 months.
How to apply for a loan?
Application requirements as per PM Svanidhi Yojana website
Documents required for loan application:
It is very important to know the required documents before filling the loan application form (LAF).
Link mobile number with Aadhaar:
It is mandatory to link the mobile number with Aadhaar as it will be required for e-KYC/Aadhaar verification during the online application process. Apart from this, it will also be necessary to get a recommendation letter from the Urban Local Body (ULB) so that one can avail the benefits of government schemes in future.
Process to update mobile number:
A form has to be filled to update the mobile number. No other document will be required for this.
check eligibility
Four categories of vendors are considered eligible to avail loan under this scheme. Read the eligibility criteria carefully and apply accordingly.
After completing these three steps, the application process can be started on the portal. Applicants can apply directly on the portal or through their nearest Common Service Center (CSC).
Age limit: You must be at least 21 years of age to avail the loan. The maximum age may vary as per the lender’s policy.
Minimum Income: Most lenders accept a monthly net income of ₹25,000, but these terms may vary from lender to lender.
These rules will be applicable on the interest rates of banks and financial institutions
In case of Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Cooperative Banks and SHG Banks, the interest rates will be determined as per their existing interest rates.
At the same time, interest rates for institutions like NBFCs, NBFC-MFIs will be determined based on the guidelines issued by RBI for the respective category.
For Microfinance Institutions (MFIs) which do not fall under NBFCs or other categories not covered under RBI guidelines, interest rates will be applicable as per the existing regulations for NBFC-MFIs.
Vendors will benefit from 7% interest relief
Vendors taking loans under this scheme will get the benefit of an interest subsidy of 7%. This subsidy will be deposited directly into the borrower’s account on a quarterly basis.
Lending banks and financial institutions will submit interest subsidy claims every quarter (30 June, 30 September, 31 December and 31 March). However, this subsidy will be applicable only to those accounts which are in the standard (non-NPA) category as per RBI norms on the relevant date.
The interest subsidy under the scheme will be available till March 31, 2022. This facility will be given on both the initial and subsequent loans, provided the loan accounts meet the conditions of the scheme. If a vendor repays the loan early, he will be given the benefit of a lump sum subsidy.
Incentives will also be available on digital transactions
Under this scheme, vendors will also be given cashback facility to promote digital transactions .
*Note- This information has been taken from the official website. For more information or confirmation, please visit the official website of the concerned institute.