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Top 5 Govt Backed Loan Schemes For Your Personal Finance In 2022

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The micro, small, and medium-sized enterprise (MSME) sector is the lifeblood of the Indian economy. The industry is well-known for creating the most jobs in India and contributing over 30% of the country's GDP.

 

Considering the significance of the MSME sector and the role it plays in India's economy, the government of India offers a variety of financing packages to help the sector flourish.
Government-backed business loans provide MSMEs with the necessary financial resources to sustain their current operations and expand. In addition, the Indian government's beginning company loans enable simple access to money to turn bankable business ideas into lucrative companies.

Pradhan Mantra Jhan Dhan Yojna (PMJDY)

Pradhan Mantra Jhan Dhan Yojna (PMJDY)

PMJDY is the National Mission for Financial Inclusion, which aims to provide inexpensive access to financial services such as basic savings and deposit accounts, insurance, remittance, credit, and pensions. The proposal envisions universal banking access, with each family having at least one basic banking account, as well as access to credit, financial literacy, insurance, and pensions.

Poor connection and online transactions will be handled as technology challenges. The Scheme also intends to employ mobile transactions through telecom carriers and their established centers as Cash Out Points for Financial Inclusion. A concerted attempt is also being made to recruit the country's youngsters to engage in the Mission Mode Program.

Under the scheme, the individual will get all the basic facilities that a regular account gets. Other than the regular features, the PMJDY account holder will be eligible for accident Insurance Cover of INR 1 lakh (enhanced to INR 2 lakh to new PMJDY accounts if opened after 28.8.2018), an overdraft (OD) facility up to Rs. 10,000 to eligible account holders is also available.

PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Atal Pension Yojana (APY), Micro Units Development & Refinance Agency Bank (MUDRA) scheme.

MUDRA Yojna
 

MUDRA Yojna

"MUDRA" stands for Micro Units Development & Refinance Agency Bank, it is a refinancing Institution under the guidance of the Government of India. The scheme's highlighting feature is it allows the inclusion of last-mile financiers. The scheme extends credit to non-farm enterprises in manufacturing, trading, and services whose credit needs are below Rs. 10 lakhs. However, MUDRA does not lend directly to micro-entrepreneurs or individuals.

MUDRA loans can be availed of from the nearby branch office of a bank, NBFC (Non-Banking Financial Companies), MFIs, etc. Borrowers can also now file online applications for MUDRA loans on the Udyamimitra portal at udyamimitra.in.

Based on the stage of growth or development and funding needs of the micro-unit / entrepreneur, the beneficiary can avail of the following types of loans:

  1. Shishu - Loans up to INR 50,000/-
  2. Kishor - Loans between INR 50,000 and INR 5 lakh
  3. Tarun - Loans between INR 5 lakh and INR 10 lakh

Stand Up India

Stand Up India

Stand Up India is another government scheme to promote entrepreneurship to grass root level of economic empowerment and job creation. The Stand-Up India Scheme seeks to leverage the institutional credit structure to reach out to the underserved sector and people in the country. The scheme enables underserved people to participate in the economic growth of the nation. With a 1.25 lakh bank branch network located across the country, the scheme will benefit at least 2.5 lakh borrowers across India.

The objective of the Stand-Up India Scheme is to facilitate bank loans between INR 10 lakh to INR 1 Cr to at least one SC or ST borrower and at least one Woman borrower per bank branch of all scheduled commercial banks for setting up a greenfield enterprise. Under the scheme, you can apply for a loan if you come under mentioned categories.

The Stand-Up India portal provides a digital platform based on 3 pillars to support enterprises promotion among entrepreneurs from SC, ST, and Women category through.

  1. Handholding support
  2. Providing Information on financing
  3. Credit Guarantee.

Potential entrepreneurs can navigate through the interactive portal at standupmitra.in for support services such as mentorship, training, guidance, skill development programs, etc.

Ayushman Bharat Yojana

Ayushman Bharat Yojana

Ayushman Bharat or PMJAY (Pradhan Mantri Jan Arogya Yojna) is another flagship scheme by the Government of India. It is the world's largest health insurance/ assurance scheme fully financed by the government.

The scheme was launched based on the recommendation made in the National Health Policy 2017, to achieve the vision of Universal Health Coverage (UHC). It provides a cover of INR 5 lakhs per family per year for secondary and tertiary care hospitalization across public and private impaneled hospitals in India. It is a cashless scheme, which means you don't have to care about money to get the healthcare service at the hospitals.

This program aims to undertake ground-breaking ideas at the primary, secondary, and tertiary levels to address the healthcare system holistically. Ayushman Bharat employs a continuum of care model that consists of two interrelated elements: prevention and treatment.

Skill Loan Scheme

Skill Loan Scheme

The Skill Loan Scheme was established in July 2015 to provide individuals with institutional credit for skill development courses that are aligned to National Occupations Standards and Qualification Packs and lead to a diploma, certificate, or degree from training institutes that follow the National Skill Qualification Framework (NSQF). This scheme applies to all Indian Banks' Association (IBA) member banks, as well as any other banks and financial institutions that the RBI may deem appropriate. The plan gives banks wide guidance for putting the skill loan program into action.

Under the scheme, any individual who has secured admission in a course run by Industrial Training Institutes (ITIs), Polytechnics or in a school recognized by Central or State education Boards or in a college affiliated to a recognized university, training partners affiliated to National Skill Development Corporation (NSDC) / Sector Skill Councils, State Skill Mission, State Skill Corporation can get an easy loan between Rs 5000 to 1,50,000 at the 1.5% interest rate. The scheme does not allow for collateral to be charged from the beneficiary.

Story first published: Tuesday, December 28, 2021, 11:22 [IST]
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