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Here's how to get a 50,000 loan with Aadhaar card under PM Svanidhi Yojana

Jan 07, 2025 12:55 PM IST

The beneficiaries are given a smaller loan and they can then avail a larger loan if they repay on time

The Pradhan Mantri Svanidhi Yojana (PM Svanidhi Yojana) scheme, first introduced in 2020 to support businesses affected by the COVID-19 pandemic, allows small traders and street vendors to avail a loan with an Aadhar card, without guarantee.

Traders can apply for the PM Svanidhi scheme in a government bank using their Aadhar card, which is mandatory(Representational image/HT Print)
Traders can apply for the PM Svanidhi scheme in a government bank using their Aadhar card, which is mandatory(Representational image/HT Print)

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How the PM Svanidhi Yojana works

The beneficiary traders are initially given a loan of up to 10,000. If they repay it on time, they can avail 20,000 next time. This increases to 50,000 based on the previous loan's timely repayment.

The loan repayment is to be done in instalments within 12 months.

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How to apply for the PM Svanidhi Yojana works

Traders can apply for the PM Svanidhi scheme in a government bank using their Aadhar card, which is mandatory.

1) Get the information documents required for the Loan application form (LAF).

2) Link the mobile number to Aadhaar, which is mandatory as it is needed to get e-KYC/Aadhaar validation during the online application process.

3) Borrowers will also be required to get a letter of recommendation from urban local bodies (ULB) for future benefits from such types of government welfare schemes.

4) Check the eligibility status. The scheme has four categories of vendors who are eligible to get the loan.

5) After following these steps, the application process can be started on the portal directly or through a nearby Common Service Centre (CSC).

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Interest rate

The interest rates for related scheduled commercial banks, regional rural banks (RRBs), small finance banks (SFBs), and cooperative banks will be as per the currently prevailing rates.

For NBFCs, NBFC-MFIs, and so on, the interest rates will be as per RBI guidelines for the respective lender category.

For MFIs (non-NBFC) as well as other lender categories which are not covered under the RBI guidelines, interest rates under the scheme would be applicable as per the extant RBI guidelines for NBFC-MFIs.

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