The central government has various schemes that offer loans to people. Two notable schemes are PM Vishwakarma and PM Swanidhi.
Under the Vishwakarma scheme, loans of up to Rs 3 lakh are available for different groups of people.
The PM Swanidhi scheme specifically provides loans of Rs 50,000 to street vendors.
Details of the PM Swanidhi Scheme
The PM Swanidhi scheme is unique because it starts with a loan of Rs 10,000.
If the loan is repaid on time, the amount can increase based on the borrower’s repayment status.
Started in 2020: The scheme was launched during the Covid-19 pandemic by the Ministry of Housing and Urban Affairs.
Its goal is to help street vendors restart their businesses, which were severely impacted by the pandemic.
Loan Amount and Benefits
1) The scheme offers an initial loan of Rs 10,000 without any guarantee for one year.
2) If this loan is repaid on time, borrowers can receive a second loan of Rs 20,000 and a third loan of Rs 50,000.
3) The scheme encourages timely repayment with an interest subsidy of 7% per annum. Additionally, borrowers can get a cashback of up to Rs 1,200 each year.
The interest rates are favorable for loans from Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Cooperative Banks, and SHG Banks.
For loans from NBFCs and NBFC-MFIs, the interest rates will follow the guidelines set by the Reserve Bank of India (RBI).
