If you're a street vendor, hawker, or small businessman, the PM SVANIDHI scheme could be beneficial. Under this scheme, eligible beneficiaries can avail a loan of up to ₹90,000 without collateral. Benefits like a UPI-linked RuPay credit card and cashback on digital payments are also available, subject to certain conditions. A credit card is also offered under this scheme. This scheme could be beneficial for those with financial constraints and looking to start a new business.

More than 75 lakh people benefited

The PM SVANIDHI scheme was launched in June 2020. This scheme will run until March 31, 2030. So far, more than 7.55 million people have taken loans under this scheme. They have not provided any collateral. They have availed of loans without any collateral. More than 11.2 million loans worth ₹17,800 crore have been disbursed under this scheme. More than 5.5 million beneficiaries have been digitally enrolled under this scheme. Beneficiaries have taken advantage of digital cashback and interest subsidy. The government has provided approximately ₹800 crore for this.

Holidaysand seasonal events

Loan up to Rs 90,000 is available in three installments

Under this scheme, the loan amount isn't disbursed all at once. It's disbursed in three installments. Previously, the total loan limit for this scheme was ₹80,000, but this has now been increased to ₹90,000. After the application is approved, the first installment of ₹15,000 is disbursed. Subsequent installments of ₹25,000 and ₹50,000 are disbursed in the third installment.

Credit card is also provided

Beneficiaries of the PM SWANIDHI scheme can avail of a UPI-linked RuPay credit card, but they must comply with the terms and conditions. Beneficiaries who repay their second loan installment on time are issued a credit card with a spending limit of ₹30,000. Cashback is also offered on digital payments.

How to apply

There's no need for a major paperwork exercise to apply for the PM SWANIDHI scheme. An Aadhaar card is a crucial document to apply. Since this loan is small and the amount is small, the EMI is also low. You'll need to apply for this scheme at a government bank. You'll need to fill out an application and provide the necessary information. A copy of your Aadhaar card must be attached to the application. After verification, the bank completes the loan approval process. Approximately 40% of the scheme's beneficiaries are women.