The Government of India is offering several loan schemes that do not require a guarantor, as the government itself, or “Modi, gives the guarantee.” These loans are designed to be accessible with very low-interest rates and minimal paperwork. All you need is your Aadhaar card, PAN card, and a bank account to apply. These schemes are available to residents of any state in India. Here is a detailed look at the key loan programs offered by the central government.
PM Svanidhi Loan Yojana
This is considered the smallest of the loan schemes and is not available to government employees, income tax payers, or large businessmen. Officially known as the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi, this loan provides financial support in three installments: a first installment of ₹10,000, a second of ₹20,000, and a third of ₹50,000.
The government also offers subsidies with this loan, with up to 35% of the loan amount being waived in some cases, while in others, the interest is waived. So far, 1.14 crore people have applied for this scheme, and funds have already been released to 98 lakh individuals. To apply, you only need a bank account, Aadhaar card, and PAN card.
PM Vishwakarma Loan Yojana
The Pradhan Mantri Vishwakarma Loan Yojana offers a loan of ₹1 lakh for a period of 18 months and a subsequent loan of ₹2 lakh for 30 months. Similar to the Svanidhi scheme, this loan is not available to government employees, large businessmen, or those who pay income tax. However, it is open to all other citizens across India. The only documents required are a PAN card, Aadhaar card, and a copy of your bank account details.
Pradhan Mantri Mudra Loan Yojana
This is one of the most significant and awaited loan schemes. Unlike the other two, the Pradhan Mantri Mudra Loan Yojana is open to everyone, with no restrictions for government employees, income tax payers, or businessmen. This scheme offers loans up to ₹10 lakh without requiring any guarantee.
The Mudra Yojana is divided into three categories:
- Shishu: For loans up to ₹50,000.
- Kishor: For loans from ₹50,000 to ₹5 lakh.
- Tarun: For loans from ₹5 lakh to ₹10 lakh.
The government is actively disbursing funds under this scheme. Furthermore, the loan limit is set to increase to ₹20 lakh starting from April 1st.
Prime Minister’s Employment Generation Programme (PMEGP)
The PMEGP, or Prime Minister’s Employment Generation Programme, is another major loan scheme. Under this program, an individual can get a loan of up to ₹25 lakh. If an institution or organization applies, the loan amount can go up to ₹50 lakh. The application for this can be filled out online.
Why Choose a Government Loan?
If you need to take a loan, it is better to approach the government rather than borrowing from local sources. Borrowing from private individuals can lead to public humiliation and harassment if you are unable to repay on time. Government loans are provided without asking for a guarantee. While there are other specific loans available, such as education and agriculture loans, the schemes mentioned above are designed for everyone.
