What are Government Personal Loan Schemes?

The government personal loan schemes are a financial initiative established by the federal or state governments to provide loans for a range of uses. It includes loans for business development, education, or personal expenses, at affordable interest rates. Its interest rates are frequently lower than those of most lenders, which lowers the cost of borrowing. Let’s check out several schemes below.

What is the Personal Loan Government Scheme?

In India, government-backed personal loan schemes offer financial help to individuals, especially for specific needs. These schemes typically provide flexible repayment terms and are often more accessible to those who might struggle to qualify for conventional loans. Some of the popular government schemes include:

1. Pradhan Mantri Mudra Yojana (PMMY): This scheme aims to provide loans to small businesses and entrepreneurs. Offers loans up to Rs.10 lakh under three categories: Shishu (up to Rs.50,000), Kishore (Rs.50,000 to 5 lakhs), and Tarun (Rs.5 lakh to 10 lakh).

2. Atal Pension Yojana (APY): Though primarily a pension scheme, it allows individuals to take small personal loans in case of emergencies or retirement planning needs. Available for individuals between 18 and 40 years of age.

3. Education Loans under the National Scholarship Scheme: For students looking to pursue higher education, including overseas studies. It provides a loan amount up to Rs.20 lakh for domestic courses and up to Rs.50 lakh for overseas studies. It is available for students enrolled in recognised courses at Indian or foreign institutions.

4. Stand-Up India Scheme: Provides financial help to SC/ST and women entrepreneurs to set up new businesses. Loans ranging from Rs.10 lakh to Rs.1 crore for setting up a greenfield enterprise.

This is all about govt personal loan schemes.

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How to Get Personal Loan Without Income Proof in Bangalore

Government personal loan schemes can be a bit tricky to understand. In India, there is no such scheme available as of now. These are personal loan schemes that many banks offer to people who have been government employees. There are multiple benefits offered to government employees, like:

• The loan will be sanctioned as a Term Loan or Overdraft

• There is no minimum amount set

• Maximum amount of loan per person is Rs 15 lakh (depends on repayment capacity)

What is the Interest Rate For Personal Loan Government Scheme?

Union Bank the interest rate for personal government scheme starts from 8.35%. You can know about the rates in detail in

anytime. The eligibility criteria to apply for a personal loan government scheme in Union Bank is:

• The applicant must be a confirmed or permanent employee at government organisation

• The minimum age of the applicant should be 18 years or above

• The employee has to be the main applicant for availing personal loans

• The employee may or may not have salary account in the Union Bank of India

The central government personal loan scheme interest is however not the same in all banks and their features differs as well. You can visit your bank and inquire about the types of benefits they provide to government employees. 

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