New Delhi: Aadhaar card has become the most important document for any Indian citizen. If any person doesn’t possess an Aadhaar, the individual cannot own a bank account, have a PAN card or do any kind of work in government or private institutions.
The Aadhaar card has become mandatory for everything, from admission in schools to jobs and starting any business. There is a unique feature which several people don’t know, i.e., a person can take a loan on an Aadhaar card. For this type of loan, the applicant will have to apply in a bank under the Pradhan Mantri Swanidhi Yojana being run by the Central Government.
What is Pradhan Mantri Swanidhi Yojana
The Central Government Pradhan Mantri Swanidhi Yojana to provide relief to street vendors and small businessmen during the COVID pandemic. The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) was launched on June 01, 2020 as the economy was severely hit by the pandemic.
The scheme allows vendors to get loans up to Rs 50,000 on Aadhaar card. The government believes that this scheme has greatly benefited street vendors and small businessmen. The scheme allows the beneficiaries to overcome the financial crisis and run a business.
Pradhan Mantri Swanidhi Yojana allows people to get a loan without any guarantee. It allows applicants to apply for loan multiple times under the scheme. For the first, one will get a loan of Rs 10,000 on Aadhar card.
If the borrower repays the loan on time, then next time the person can take a loan up to Rs 20,000. If the applicant repays Rs 20,000 on time, then next time the person is eligible to get a loan up to Rs 50,000 on Aadhar card. But the individual is required to repay the loan within 12 months.
PM SVANidhi benefits
- The government launched the scheme to facilitate collateral-free working capital loan up to Rs 10,000 of 1 year tenure, with enhanced loan up to Rs 20,000 and Rs 50,000 in the second and third tranches respectively, on repayment of earlier loans
- The Incentivise regular repayment, through interest subsidy @ 7 per cent per annum
- Reward digital transactions, by way of annual cash back up to Rs 1,200
The Pradhan Mantri Swanidhi Yojana (PM SVANidhi) offers loans up to Rs 50,000 to street vendors and small business owners using only their Aadhaar card. This collateral-free loan scheme, launched in 2020, provides financial relief. Loan amounts increase with timely repayment, reaching Rs 50,000 after two successful repayments. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
