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PM SVANidhi Scheme: Collateral free loan for street vendors; Details of steps to apply

PM SVANidhi Scheme: The Corona outbreak killed thousands of people and forced millions more to lose their jobs. The poor and business people bore the brunt of the consequences of the lockdown. In India, a large number of people work as street vendors. To assist this group of people, the government has launched the PM […]

Edited By : Divya Richa | Updated: Nov 12, 2022 11:21 IST
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PM SVANidhi Scheme: The Corona outbreak killed thousands of people and forced millions more to lose their jobs. The poor and business people bore the brunt of the consequences of the lockdown.

In India, a large number of people work as street vendors. To assist this group of people, the government has launched the PM SVANidhi Scheme, which stands for Collateral Free Loan.

The government offers unsecured loans to street vendors ranging from Rs 10,000 to Rs 50,000 under this scheme. The plan was to launch in 2020.

You have the option of doubling the loan amount:

According to an article in the Economic Times, the Modi government at the centre intends to increase the initial loan amount from 10,000 to 20,000. The government and the bank are negotiating on this issue. Banks will have given approximately 20 lakh people loans totaling Rs 10,000 by 2020. In 2021, a total of 9 lakh people received loans through the PM Svanidhi Scheme. At the same time, 2 lakh people have received Rs 10,000 loans until September 2022. If the government doubles the loan amount in this case, street vendors will receive Rs 20,000 instead of Rs 10,000 for the first time they apply for a loan.

Obtain a loan with no collateral:

No guarantee is required to apply for a loan through the “PM Svanidhi Yojana.” This loan is completely collateral-free and is given to street vendors in order for them to continue operating their businesses. For the first time, the application is granted a loan of Rs 10,000 for a year. A person receives a second loan of 20,000 if they repay the first in a year.

Simultaneously, street vendors received a loan of up to Rs 50,000 for the third time with no guarantee. A 7% interest rate is required on this loan, and you will receive an interest subsidy if you make your monthly payments electronically. In this case, the loan is interest-free due to the subsidies and rebates.

Procedure for applying for the PM Svanidhi Yojana:

Step 1: Go to any government bank to apply for this scheme.

Step 2: There, a S Loan application must be completed.

Step 3: In addition, a copy of the Aadhar Card must be provided.

Step 4: Once your loan has been approved, the funds will be deposited into your account by the bank.

To take advantage of this programme, you must have both an Aadhaar card and a bank account.

First published on: Nov 12, 2022 11:21 AM IST
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