Loans without guarantee: The government runs numerous schemes for millions of people, designed to cater to individuals from various backgrounds. Many people wish to start a new business or expand an existing one, creating a need for capital. While securing an unsecured loan in the open market is difficult today, the government offers loans without any guarantee. Several such schemes are currently in operation; let us explore the specific schemes through which the government provides these collateral-free loans.
Understanding the PM Mudra Loan Scheme
If you wish to start or expand a business, you can avail of a loan for this purpose. A great option is the government’s PM Mudra Scheme, which offers affordable loans. This scheme is divided into four categories. You can access these loans based on your needs and eligibility, and the biggest advantage is that they don’t require any guarantee.
Under the PM Mudra Yojana, the ‘Shishu’ loan offers ₹50,000, while the ‘Kishor’ loan provides funds ranging from ₹50,000 to ₹5 lakh. The ‘Tarun’ loan offers amounts between ₹5 lakh and ₹10 lakh, and the ‘Tarun Plus’ category provides loans up to ₹20 lakh. You can apply through the official website: https://udyamimitra.in/.
PM SVANidhi Scheme
Additionally, the government launched the PM SVANidhi Scheme in 2020 to help street vendors establish and expand their businesses. Under this scheme, the government provides collateral-free loans. Vendors can avail loans up to three times under this scheme, starting with an initial loan of ₹10,000. After repaying the initial loan, one can then obtain a loan of ₹20,000. For the third stage, a loan of ₹50,000 can be availed. Under this scheme, loans are available without a guarantee.
PM Vishwakarma Yojana
The government is running an excellent scheme to provide loans to individuals engaged in traditional trades. Through the PM Vishwakarma Scheme, the government extends loans to these artisans. Initially, it provides a loan of ₹1 lakh, with the option to obtain up to ₹2 lakh.