PM SVANidhi Yojana: If you are a street vendor and want to get your work back on track? Then, a great scheme of the Modi government is ready to help you. We are talking about Pradhan Mantri Svanidhi Yojana (PM SVANidhi Yojana), also known as the ‘Me-District’ scheme. Under this scheme, you can take a guarantee-free business loan of up to ₹ 80,000 in three installments. This is a boon for those poor and financially weak people who want to stand on their feet. Let us know about this special scheme in detail.
Loan of ₹ 80,000, in three easy installments
When the country was battling the COVID-19 epidemic and people’s livelihoods were in crisis, in such difficult times, the Narendra Modi government launched the PM Svanidhi Yojana to restart the livelihood of street vendors by providing them financial assistance. In this scheme, the government gives a loan of up to ₹ 80,000 in three phases if needed.
These three phases are as follows:-
First phase:- Loan of ₹ 10,000 to start a business.
Second phase:- If you repay the first loan on time, then you will be eligible for a second loan of ₹ 20,000.
Third phase:- After repaying the second loan, you are eligible for a third loan of ₹ 50,000 in a lump sum.
Through these installments, you can gradually grow and strengthen your small business. This ensures that you do not have a big financial burden at once.
How to take full advantage of the PM Swanidhi Yojana
As we told, to take full advantage of PM Swanidhi Yojana, the applicant has to build their ‘Diligence’ (Diligence/Creditworthiness). This means that you have to return the money received from the government on time. Suppose a person wants to start his own small business and wants to take advantage of this government scheme. First, he will get a loan of ₹10,000 from the government.
If he repays this amount within the stipulated time, he can take a second loan of ₹20,000 under the scheme. And only after successfully repaying this second loan, he will be eligible for a third loan of ₹50,000 in one lump sum. With this amount, he can grow his small business faster. This ‘step-up’ approach ensures that the benefits of the scheme reach the right needy and responsible individuals.
Loan Repayment Time Limit and Documents
As per the rules of PM Swanidhi Yojana, the loan amount taken has to be repaid within a period of one year. The loan amount taken under this scheme can be repaid within one year, and an EMI (monthly installment) payment facility is also available. That is, you have to return a small amount every month, so that you do not have a big burden at once. This is very convenient for those whose income is irregular. To avail of this scheme, you only have to keep your Aadhaar Card as a necessary document. This makes the process very simple and free from paperwork, so that more and more people can take advantage of it.
The benefit of interest subsidy on the loan also
The number of beneficiaries in the Modi government’s PM Swanidhi scheme is continuously increasing, and it is also very easy to avail of it.
The application process is as follows
The applicant applies for the Swanidhi loan at any nearest government bank. After the application, it is verified by the Urban Local Bodies (ULB). The ULB confirms your eligibility and the information provided. After verification, the ULB issues a recommendation to the concerned lending institution or bank. The bank also reviews the application at its level and then approves the loan. After this, the loan amount is transferred directly to your bank account.