You can get a loan of up to Rs 50,000 using Aadhaar card, do you know? Yes you’ve heard it right. The SVANidhi scheme, officially known as the PM SVANidhi Scheme, was introduced by the central government to assist businesses impacted by the Covid pandemic. Launched in 2020, its primary goal is to empower small traders and street vendors to become self-sufficient. Beneficiaries can access loans without needing any collateral, simply by using their Aadhaar card.
Initially, traders can receive loans of up to Rs 10,000. Once this amount is repaid, they can apply for Rs 20,000 next. If they continue to repay on time, the loan amount can increase to Rs 50,000. An Aadhaar card is essential for obtaining a loan through the PM SVANidhi scheme, and merchants can apply at their bank using this identification. The loan must be repaid in installments over a period of 12 months, with the amounts being Rs 10,000, Rs 20,000, and Rs 50,000, all repayable within a year.
This initiative, which supports over 50 lakh street vendors nationwide, falls under the Ministry of Housing and Urban Affairs. The scheme was initially designed to provide easy access to funds for street vendors. As of March last year, approximately 65.75 lakh loans have been distributed under this program.
How to Apply
To apply for the loan, applicants need to fill out and submit the application form available on the PM SVANidhi website. It’s important to know what documents are necessary for this process. The applicant’s mobile number must be linked to their Aadhaar, as KYC verification is required for online loan applications. Therefore, linking the mobile number to the Aadhaar number is mandatory.
