Taking a loan often involves a lot of paperwork and formalities, but did you know you can get a loan of up to ₹50,000 using just your Aadhaar card? This is possible through the Pradhan Mantri Swanidhi Yojana, a scheme designed to support small traders and street vendors.
If you’re a small business owner or struggling financially, this government initiative can provide quick and hassle-free financial assistance.
What Is the Pradhan Mantri Swanidhi Yojana?
Launched in 2020 during the COVID-19 pandemic, the Pradhan Mantri Swanidhi Yojana aims to support small businesses and street vendors. The scheme provides collateral-free loans to help traders restart their businesses and become financially stable.
The scheme ensures a seamless process by linking loans with the Aadhaar card, eliminating the need for additional documentation or guarantees.
How Does the Aadhaar-Based Loan Work?
Under this scheme, loans are given in three phases:
- Initial Loan of ₹10,000:
Small traders can first avail a loan of ₹10,000 without providing any collateral. - Loan Up to ₹20,000:
If the first loan is repaid on time, traders can apply for a second loan of up to ₹20,000. - Maximum Loan of ₹50,000:
Consistent repayment of loans allows traders to qualify for a maximum loan of ₹50,000.
The repayment period for each loan is 12 months, making it easier for traders to manage their finances.
Who Can Apply for This Scheme?
This scheme is specifically designed for:
- Street vendors.
- Small business owners.
- Traders impacted by the pandemic.
The primary goal is to help these individuals rebuild their businesses and boost their financial independence.
Simple Application Process for Pradhan Mantri Swanidhi Yojana
Applying for this scheme is easy and straightforward:
- Visit a Government Bank or CSC:
You can apply by visiting any government bank or Common Service Center (CSC) nearby. - Online Application:
Alternatively, you can apply online through the official portal. - Provide Necessary Details:
You will need to submit:
- Aadhaar card (linked to your mobile number for e-KYC).
- Business and personal information.
- Bank account details.
Key Benefits of the Scheme
- Collateral-Free Loan: No need to provide any guarantee or security.
- Quick Processing: Loans are linked to Aadhaar, ensuring minimal paperwork and faster approvals.
- Progressive Loan Limit: Consistent repayment increases your eligibility for higher loan amounts.
