PM SVANidhi Scheme: Modi government to give collateral free loan to street vendors, check steps to apply

PM SVANidhi Scheme: Corona outbreak caused the deaths of lakhs of individuals; it also forced crores of people to lose their jobs. The impoverished class and business people suffered the most as a result of the lockdown.

A major amount of people in India work as street vendors. To assist this group of people, the government has launched the Collateral Free Loan scheme which is known as the PM SVANidhi Scheme. 

Under this scheme, the government provides street sellers with unsecured loans in the range of Rs 10,000 to Rs 50,000. The scheme was in 2020.

You can double the loan amount:

The Modi government at the centre intends to boost the initial loan amount from 10,000 to 20,000, according to an article in the Economic Times. On this subject, the government and the bank are in discussion. In the year 2020, banks will have given roughly 20 lakh people loans totalling Rs 10,000. A total of 9 lakh people received loans through the PM Svanidhi Scheme in 2021. At the same time, a total of 2 lakh people have received loans of Rs 10,000 up 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 when applying for a loan for the first time.

Get a loan without security:

To apply for a loan through the "PM Svanidhi Yojana," you don't need any form of guarantee. This loan is entirely collateral-free and is provided to street sellers so they can continue operating their businesses. In this case, the application is granted a loan of Rs 10,000 for a year for the first time. An individual receives a second loan of 20,000 if they repay this one in a year.

Also read: https://www.dnaindia.com/personal-finance/report-post-office-scheme-invest-rs-50-daily-and-get-rs-35-lakh-3001329

At the same time, the street vendors have received a loan of up to Rs 50,000 for the third time with no guarantee. On this loan, a 7% interest rate is required to be paid, and if you make your monthly payments electronically, you will receive an interest subsidy. Due to the subsidies and rebates, in this case, the loan is interest-free.

Steps for application procedure for the PM Svanidhi Yojana:

Step: 1. To apply for this scheme, go to any government bank.

Step: 2. There, an S Loan application needs to be filled.

Step: 3. A copy of the Aadhar Card must be provided in addition to this.

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

Note: It is necessary to have both an Aadhaar card and a bank account to benefit from this program.