Are you looking to start your own small business but are unable to proceed due to a lack of funds? This news is especially important for you, as we’re telling you about a government scheme that offers business loans up to ₹90,000 without any guarantee. The most important thing is that you don’t have to complete many formalities to receive this amount, and the money is transferred to your account based on just one document (Aadhaar). We’re talking about the Pradhan Mantri Svanidhi Yojana.
Key Takeaways
Quick Read- Loan Timeframe
- Loan Disbursement in Three Phases
- Only Aadhaar Card Required
- Application Process
During the COVID-19 pandemic, when small businesses suffered the most, street vendors’ businesses came to a standstill. To help such small businesses, the Modi government launched the PM Svanidhi Yojana, which provides financial assistance to help them rebuild their businesses. Previously, this government scheme offered loans up to ₹80,000, which has now been increased to ₹90,000 by 2025.
Loan Timeframe
The most important feature of the PM SVANidhi Scheme is that the government provides loans without any guarantee, and the stipulated amount is disbursed in three phases. It is worth noting that the government has not only increased the loan amount available under this scheme but also extended its deadline. Last August, the Union Cabinet approved the extension of the PM SVANidhi Scheme. The Department of Financial Services, in collaboration with the Ministry of Housing and Urban Affairs, will administer the scheme until March 31, 2030.
Loan Disbursement in Three Phases
The loan process under this scheme is completed in three phases. The first phase is for starting a small business. Simply put, if a needy individual applies to start a business, upon approval, they will receive an initial loan of ₹15,000 without collateral, which must be repaid within a specified period. After repaying this amount within the stipulated time, they will receive a second installment of ₹25,000 to further their business. This must be repaid in the same manner, and once done so, they will be eligible to receive a lump sum loan of ₹50,000. The government disburses this amount based directly on your creditworthiness.
Only Aadhaar Card Required
To receive this ₹90,000 loan, you don’t need to complete any special formalities; you only need to provide one document: your Aadhaar card. Furthermore, you won’t need to provide any other collateral to avail this loan. You only need to do one thing: repay the amount received within the stipulated time. Importantly, this loan amount can also be repaid through EMI payments.
Application Process
You can apply for the PM SVANidhi Scheme at any government bank. Obtain the PM SVANidhi Scheme form from there and fill in all the information correctly. Check the completed form once and attach a copy of your Aadhaar card. The bank will verify the information entered in your application and approve the loan. Once your application is approved, you will start receiving the loan amount in three installments.
