In a country like India, a lot of individuals need financial assistance. For that, they need to deal with the banking and financial institutions to get certain loans or financial assistance. However, in many cases, it can be found that a person who in many cases often finds it difficult to pay off all the loans can get rejected from the financial companies.
Here comes the need for a government loan, which has been arranged by the security of the government for the welfare of the citizens. Whether a person can get a loan from the personal loan DSA or not, these are the loans that one can apply based on their type of profession and work.
In this blog, we will talk about some of the schemes and processes that are essential for the eligibility criteria and how one can get a government-backed loan.
Government Loan For Education
Starting with education, a person needs to send their kids to proper schools, and for that government has certain credit programs that allow a low-income group of citizens to avail of education loans at low cost from the government.
- Pradhan Mantri Vidya Lakshmi Karyakram (PMVLK)
In this scheme the government provides the interest subsidies which a person took from the loan. Here, an individual only needs to return the capital after a certain time, and the person needs to send their child to some school or college that will let the individual take this loan.
- National Scholarship Portal (NSP)
In the national scholarship portal, various state governments and central scholarship schemes are there that disburse a certain amount of money to the student’s account for their education and higher studies, and that helps the students to level up and succeed in life.
Government Loans For Agriculture
The next thing that is there from the government is the ways through which they can protect the farmers of the nation and ensure that they have their needs covered and can do all the necessary things for themselves.
- Kisan Credit Card (KCC)
The first is the Kisan credit cards, where a farmer gets a credit limit through which they can purchase all the farming equipment, and that helps them to resolve the problem of the working capital and get the items required for farming. Here, the interest rate is quite low, and in case of failed payments, the government allows certain concessions depending on the condition of the farmer.
- NABARD Schemes
When it comes to more nuanced loan offers then a farmer can visit the National Bank for Agricultural and Rural Development to know in detail about the types of loans they can avail for a particular farming season.
Government Loans For MSMEs
The next pillar of our economy is the small business individuals who often create a secondary economy that provides jobs and opportunities to people. Hence, their protection and sustenance is something that the government looks after.
- Pradhan Mantri MUDRA Yojana (PMMY)
Here, the government provides the MSME sector a collateral-free loan of up to 10 lakh Rs and categorizes each business depending on their requirement for working capital. It helps a business to make payments and deal with the issue of cash flow and gives a boost to the businesses when there is nationwide trouble in the industry or the country.
- Credit Guarantee Fund Trust for MSME
The credit guarantee fund is a way to motivate the lending institutions to lend capital to the MSMEs where they can access funds without any collateral. That fund allows it to cover the NPAs of the bank when it incurs a significant amount of losses in a particular area.
Government Loans For Housing
Housing is also an important part, and here a DSA app can help the DSA to help the client to get the housing loan offer.
- Pradhan Mantri Awas Yojana (PMAY)
It’s one of the most popular schemes where the economically weaker section of society gets the chance to avail of a subsidy and build a small house, which will benefit a person to raise a family.
- National Housing Bank (NHB) Schemes
NHB plays a pivotyal role by making the housing loans more affordable and also refinances the loan by reducing the interest rates.
These are some of the most popular credit schemes which the government arranges to favour the weaker section of the country.
