Yes, you can avail of loans without any collateral using your Aadhaar card under the PM SVANidhi Scheme. This initiative was launched by the government during the COVID-19 pandemic to support small vendors and street vendors.
What is the PM SVANidhi Scheme?
Launched in 2020, the Pradhan Mantri SVANidhi Scheme aims to provide financial support to small vendors and street vendors to help them restart their businesses. Under this scheme, loans are offered without the need for collateral, using just an Aadhaar card. Initially, vendors could avail loans up to ₹10,000.
Those who repaid the loan on time could apply for a second loan of ₹20,000. Recently, the loan amount has been increased to ₹50,000.
The Aadhaar card has been made mandatory for availing loans under this scheme. Vendors can approach government banks and apply for loans, which need to be repaid in 12 monthly installments.
Benefits of the PM SVANidhi Scheme
- Accessible Loans: The scheme provides affordable loans for vendors to restart their businesses.
- Subsidized Interest Rates: Vendors repaying the loan on time are eligible for a 7% interest subsidy.
- Digital Payment Incentives: Encourages vendors to adopt digital payment methods by offering cashback benefits.
- Capacity Building: Provides training to vendors to enhance their skills and improve business operations.
Loan Application Process PM SVANidhi Scheme
Step 1: Loan Application Requirements
Applicants must understand the scheme details and the necessary documents for application, as mentioned on the PM SVANidhi website.
Step 2: Link Aadhaar with Mobile Number
Your mobile number must be linked to your Aadhaar card for e-KYC and online application. Applicants may also need a recommendation letter from the Urban Local Body (ULB) to avail of the scheme benefits.
Step 3: Verify Eligibility
The scheme primarily caters to four eligible categories of vendors. Applicants must ensure they meet the eligibility criteria before proceeding with the application.
Once the above steps are completed, you can submit the loan application online through the PM SVANidhi portal or at your nearest Common Service Center (CSC).
Interest Rates
Interest rates under the scheme vary based on the type of financial institution:
- Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Cooperative Banks, and Scheduled Commercial Banks offer standard rates.
- Non-Banking Financial Companies (NBFCs) and NBFC-MFIs follow RBI guidelines for interest rates.
- For MFIs that do not fall under NBFCs or other non-RBI regulated lenders, interest rates are aligned with existing guidelines for NBFC-MFIs.
Objective of the Scheme
The PM SVANidhi Scheme empowers street vendors by improving their financial status and integrating them into the formal financial system, thus promoting economic inclusion. It also focuses on helping vendors adopt modern payment systems and build their capacities through training programs.
For more details and to apply, visit the official PM SVANidhi portal or your nearest CSC.
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