₹50,000 loan with Aadhaar card, no guarantee needed under PM Svanidhi Yojana | How to apply, eligibility & details

The government’s Pradhan Mantri Svanidhi Yojana (PM Svanidhi Yojana) scheme was introduced in 2020 to support businesses affected by the COVID-19 pandemic. The idea was to make small traders and street vendors self-reliant.

Under the scheme, the beneficiaries can avail a loan with an Aadhar card, without guarantee.

How does it work?

Initially, traders are given a loan of up to ₹10,000. If they repay this loan time, 20,000 can be availed next time. Further, this amount is raised to ₹50,000 on the timely repayment of the previous loan.

Aadhaar card

To get a loan under the PM Svanidhi scheme, an Aadhaar card is mandatory. Traders can apply for this scheme in a government bank using an Aadhar card. The loan has to be repaid in instalments within 12 months.

How to apply

Loan application requirements

According to PM Svanidhi website, borrowers must understand the information documents required to fill out the Loan application form (LAF).

2. Link mobile number to Aadhaar

Linking the mobile number to the Aadhaar number is mandatory, as it will be needed for e-KYC/Aadhaar validation during the online application process. Additionally, borrowers will be required to get a letter of recommendation from urban local bodies (ULB) for future benefits from government welfare schemes.

A form must be filled out to update mobile numbers – no other document is needed.

3. Check eligibility status

The scheme has four categories of vendors eligible to get the loan. Check the eligibility criteria and apply accordingly.

After following these three steps, the application process can be started on the portal. Borrowers can apply directly on the portal or through a Common Service Centre (CSC) near their locality.

Rate of interest

The interest rates for scheduled commercial banks, regional rural banks (RRBs), small finance banks (SFBs), and cooperative banks will be as per the prevailing rates. For NBFCs, NBFC-MFIs, etc., interest rates will be as per RBI guidelines for the respective lender category. For MFIs (non-NBFC) and other lender categories not covered under the RBI guidelines, interest rates under the scheme would be applicable according to the extant RBI guidelines for NBFC-MFIs.