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Lack of money will no longer be a hindrance for those who dream of starting small businesses in India. The PM Swanidhi Yojana of the Central Government is an initiative that provides loans to economically weaker sections and street vendors without any guarantee to start or increase their business. This scheme not only opens the way to make small businessmen self -sufficient, but also gives an opportunity to convert their dreams into reality. Come, let’s know in detail about this scheme and understand how it can prove to be a game-changer for you.

PM Swanidhi Yojana: The basis of a new beginning

During the Korona epidemic, when the economic crisis in the country deepened and the livelihood of millions of people began to face a crisis, the Narendra Modi government launched the PM Swanidhi Yojana. The main objective of this scheme was to provide financial assistance to street vendors, small shopkeepers and street vendors. Under this scheme, the government provides a loan of up to Rs 80,000 in three phases. 10,000 rupees are given in the first installment, Rs 20,000 in the second and Rs 50,000 in the third installment. The specialty of this loan is that it does not require any guarantee, only Aadhaar card and some basic documents are sufficient.

How do you get the benefit of this scheme?

To take advantage of this scheme, you must first prove your credibility. If you want to start a small business, you will get a loan of Rs 10,000 first. If you repay this amount within the stipulated time, you can get a loan of Rs 20,000 and then Rs 50,000 in the next phase. You have to pay this loan in easy installments through EMI, which has to be completed within a year. In this way, this plan not only helps start your business, but also creates a way to make it stable and strong.

Without guarantee, subsidy on interest

The biggest feature of the PM Swanidhi Yojana is that for this you do not need to mortgage any property. With only Aadhaar card and some basic information you can apply for this loan. You get one year time to repay the loan amount, and it can be easily repaid in monthly installments. Not only this, the government also provides 7% annual interest subsidy on this loan, which reduces your financial burden further. This facility is proving to be a boon for small traders, who want to take their business to new heights without any major investment.

Application Process: Easy and Transparent

It is very easy to take a loan under this scheme. You have to apply to your nearest government bank or financial institution. After the application, urban local bodies (ULB) examine your documents and eligibility. After the verification is completed, the ULB issues a recommendation letter to the concerned bank. The bank also reviews your application and after getting approval, the loan amount is directly transferred to your bank account. Transparency and acceleration is ensured in this entire process, so that the needy can help in time.