Aatm Nirbhar Bharat loan is one of the most attractive factors under the Aatm Nirbhar Bharat scheme. The vision of India’s Prime minister, Narendra Modi, of transforming India into a self-reliant nation is the primary agenda of Aatm Nirbhar Bharat Abhiyan. The first mention of the same came in the form of the ‘Aatm Nirbhar Bharat Abhiyan ‘ or ‘Self-Reliant India Mission’ during the coronavirus pandemic’s announcement related to the economic package on May 12, 2020. As an essential part of the Aatm Nirbhar Bharat package, various government decisions have taken place, such as altering MSMEs’ definition, encouraging scope for private participation in numerous sectors, and increasing FDI in the defense domain aid and assistance to repressed classes and organizations. The vision has found support in various sectors. Aatm Nirbhar Bharat loan has been the backbone of the whole economic package that has sighed relief to the needy sectors and people.
The primary reason behind announcing the Aatm Nirbhar Bharat loan under Aatm Nirbhar Bharat Scheme was to revive India’s economy in all the spheres. The preliminary plan of introducing the Aatm Nirbhar Bharat loan helped the migrant workers, farmers, poor and needy in re-stabilizing their shattered life by providing them financial assistance and assisting small business enterprises with low rate loans or collateral loans free of cost. Aatmnirbhar Sena is lending support to the poor and needy ones, migrant workers, street vendors, hawkers, and others whose survival is at stake. The organization is readily putting efforts to assist them in getting financial assistance via Aatm Nirbhar Bharat Loan schemes.
About Aatm Nirbhar Bharat Loan
Aatm Nirbhar Bharat loan is a facility provided under Aatm Nirbhar Bharat Abhiyan or Self-reliant India Mission to the stressed MSMEs and other small business enterprises that needed financial and economic assistance to cope up with the trauma caused by the pandemic in the lives of the business sectors. The Aatm Nirbhar Bharat Loan aims to bring relief to various industries that are affected by the Covid-19. The Government’s scheme seeks to bring about fiscal relief, which is 1.1% of GDP. Also, they allowed most states to increase borrowing to 0.50% of the Gross State Domestic Product. Thus, this package aims to bring in new reforms in agriculture, public sector enterprises, small business startups, etc. Aatm Nirbhar Bharat loan brings new hopes into the lives of the worst-hit sectors. Also, the Aatm Nirbhar Bharat Loan plays a mandatory role in fulfilling the suppressed sectors’ dreams by securing a means of livelihood for them.
Why Aatm Nirbhar Bharat Loan?
Aatm Nirbhar Bharat Loan is a scheme under Aatm Nirbhar Bharat Yojna that aims at providing financial assistance to MSMEs who got severely affected by the pandemic. The best way to pull them out of this tedious situation is through financial aid in loans. As a guiding light to the entrepreneurs, the Aatm Nirbhar Bharat loan scheme provides capital assistance, which can be fruitful to the young crowd adamant to prove their mettle by establishing their identity local & global level.
Aatm Nirbhar Bharat Loan Schemes
In order to revitalize the Indian economy, the Central government has announced an economic package of Rs. 20 lakh crore to make India self-reliant under Aatm Nirbhar Bharat Abhiyan. In this Aatmanirbhar Bharat Abhiyan economic package, the government has stated numerous Aatm Nirbhar Bharat loan schemes for several sectors. These Aatm Nirbhar Bharat loan schemes entail AtmaNirbhar Nidhi loans, Shishu Mudra loans, MSME loans, Kisan Credit Card (KCC) loans, PMAY-CLSS (PM Awas Yojana Credit Linked Subsidy Scheme loans), and more. Now people can apply for these schemes by the Union government of India.
Given below are the different forms of Aatm Nirbhar Bharat loan schemes prescribed in all the tranches of Aatm Nirbhar Bharat Abhiyan package 2020-
Atmanirbhar Nidhi Loans
The Pradhan Mantri Street vendor’s scheme,i.e., Atmanirbhar Nidhi, is entirely get financed by the Ministry of Housing & Urban Affairs with the goal of facilitating working capital loans around Rs. 10,000 for the revival of the hawkers and street vendors who got affected up to a great extent amid the COVID-19 outbreak. Under the Aatm Nirbhar Bharat loan scheme- Atmanirbhar Nidhi- hawkers, as well as street vendors, can avail the benefit of an Rs 10,000 loan.
The scheme will assist formalize the street vendors and show the pathway of new opportunities to this sector. CSCs (Also known as common service centers) will help vendors’ enrolment in the scheme. In order to avail the advantage of this loan, lending institutions won’t be taking collateral. All vendors must give their nod to digital transactions. Furthermore, they will be getting a cashback offer. SIDBI is the implementing firm for the Pradhan Mantri Street vendor’s scheme, and to date, more than 15 lakh applications have been received by the government under this scheme, and loans up to 5.5 lakhs have been sanctioned and loans up to Rs. 2 lakh has been disbursed. The government of India launched the Street Vendors Atmanirbhar Nidhi (PM SVANidhi) Scheme to render street vendors with financial assistance in the form of credit for working capital to initiate their businesses in a hassle-free manner. Besides credit support to the vendors, there also comes a requirement to ensure that the vendors can do business in a favorable environment.
Street vendors holding the certificate of vending or identity card circulated by local urban groups and those who have been recognized in the survey but have not been allotted certificate of vending or ID card meet the eligibility criteria to apply for credit under the Pradhan Mantri Street vendor’s scheme. You can apply for loans through the PM’s Atmanirbhar scheme app.
Shishu Loans under MUDRA Yojana
Small emerging businesses under MUDRA have been disrupted the most as a result of the Coronavirus (COVID-19) lockdown & have also impacted their capacity to pay EMIs. Therefore, a Loan moratorium has already been conferred by RBI. The new portfolio of MUDRA-Shishu loans is Rs. 1.62 Lakh crore. The maximum loan amount is up to Rs. 50,000. Presently, India’s Government will render an Interest grant of 2% for immediate payees for 12 months. It will grant relief of Rs. 1500 crore to MUDRA-Shishu loanees. You can check the process of applying for this loan by clicking on the link- https://sarkariyojana.com/pradhan-mantri-mudra-yojana/
Around 28.68 crore loans amounting to Rs 14.96 lakh crore got sanctioned as of March 19, 2021, since the beginning of the scheme, as per the official statement by the Ministry of Finance. About 88 per cent of loans were concerned with the Shishu category, while near about 24 per cent of loans were delivered to new entrepreneurs & around 68 % of loans were meant for women beneficiaries. In addition to this, about 51 % of loans were furnished to SC/ST/OBC entrepreneurs. Under MUDRA Yojana, Shishu loans cater to entrepreneurs who have just initiated their journey or need lesser funds for kick-starting their businesses.
MSME Loans
MSME loans are helpful in establishing new startups and enterprises and reaching the height in terms of modernization, expansion, upscaling of technology, as well as diversification. Under this MSME Loan scheme, the Indian government is granting collateral-free loans to expedite MSMEs. The central government has composed a provision of Rs. 3 lakh crore for the MSME sector. The tenure for MSME loans is 4 Years. The benefit of this Aatm Nirbhar Bharat Loan scheme will be available to around 12 crore workers.
The applicability of this Aatm Nirbhar Bharat loan scheme is for-
- Trade Finance (Bill discounting) for proceeding ahead for payment to creditors while anticipating payment from debtors
- Purchase of Plant and Machinery, including testing equipment, furniture, lab equipment, electric fittings, etc.
- Launch of innovative product range, warehousing need, credit for marketing, business extension, and advertising plan.
- Meeting the requirements of working capital such as raw materials, finished goods, stock-in-progress, etc
- Acquisition of factory, construction of building spaces, and land
- Further monetary support for any eligible purpose
In order to apply online, hit the link- https://site.udyamimitra.in/Login/Register#NoBack
Till the 31st of October 2020, MSMEs can avail MSME loan scheme. At the time of making the announcement concerning the first tranche of the economic stimulus package of the government on 13th of May, 2020 amid the COVID-19 outbreak, Finance minister of India, Nirmala Sitharaman stated that MSMEs having an annual turnover exceeding Rs 100 crore or less than that would be meeting the eligibility requirements for receiving collateral-free loans backed by the Indian government. Besides this, the Indian government has also declared the Subordinate Debt-based scheme of 20,000 Crore Rs. for Stressed and NPA MSME to render advantage of about 2 lakh stressed and NPA MSMEs. E-market linkage will be rendered in the absence of trade fairs for boosting e-commerce. In 45 days, the Indian government and CPSEs will clear their receivables.
KCC (Kisan Credit Card) Loans
In order to give wings to the Kisan Credit Card scheme, the central government will be extending concessional credit of Rs. 2 lakh crore. The benefit of this Aatm Nirbhar Bharat Loan scheme will be benefitting more than 2.5 crore farmers in India. The scheme also encompasses fisheries & animal husbandry farmers. People can apply online for the Kisan Credit Card loan scheme and avail of the benefits prescribed below-
1- The Interest rate granted on loan may reach as low as 2.00%.
2- Users will be provided with crop insurance coverage against different types of natural calamities.
3- Banks will not endeavor security on loans up to Rs. 1.60 lakh.
4- Farmers engaged in depositing their money in the KCC (Kisan Credit Card) account will come across a high rate of interest. Furthermore, farmers are charged with a simple interest rate when they make timely payments.
5- Farmers receive insurance coverage against death, permanent disability along with other risks.
6- On the basis of crop harvesting and related period of marketing, the period of repayment is chosen. KCC cardholders can avail of the maximum loan up to Rs. 3 lakh.
7- You can apply online by clicking the link-https://pmkisan.gov.in/Documents/Kcc.pdf.
Farmers having their age lying in the range of 18 and 75 can enjoy the benefits of KCC (Kisan Credit Card Scheme). If the borrower’s age has crossed 60 years, it is mandatory to have a co-borrower where the co-borrower must be a legal heir. The eligible farmers comprise tenant farmers, owners, sharecroppers, individuals/joint cultivators, oral lessees, etc.
Other significant initiatives for the benefits of farmers are-
|
Initiatives |
Amount Projected |
|
Micro Food Enterprises |
Rs. 10,000 Crore |
|
FMD Livestock Disease Control Scheme |
Rs. 13,000 Crore |
|
Promotion of Herbal Cultivation Method |
Rs.4,000 Crore |
|
Top to total: Operation Greens |
Extra Rs. 500 Crore |
|
Animal Husbandry Infrastructure Development Fund Plan |
Rs. 15,000 Crore |
|
Farm Based Infrastructure Creation |
Rs. 1 Lakh Crore |
|
PM Matsya Sampada Yojana |
Rs.20,000 Crore |
|
Promotion of Bee Keeping |
Rs. 500 Crore |
Credit Linked Subsidy Scheme Loans under Prime Minister’s Awas Yojana
One of the influential Aatm Nirbhar Bharat Loan schemes, i.e., Credit Linked Subsidy scheme loans, will be granted under Prime Minister’s Awas Yojana to the lowest strata of the mid-income level community. PMAY CLSS scheme came into existence in the month of May 2017 and ended on the 31st of March, 2020. Recently, it has got an extension until March 2021. Till now, more than 3.3 lakh families have received the benefit from the Credit Linked Subsidy scheme. This Aatm Nirbhar Bharat Loan scheme will lead to the creation of jobs on an immediate basis and will be increasing the demand for materials required for construction purpose like cement, transport, steel as well as various other materials needed for the purpose of construction of the house. In the next year, around 2.5 lakh MIG group people will gain the benefit from the PMAY CLSS scheme under PM Awas Yojana.
You can directly apply online by hitting the link- https://pmaymis.gov.in/Open/Check_Aadhar_Existence.aspx?comp=b
Key Highlights of Aatm Nirbhar Bharat Loan
MSMEs are given various relief measures in the form of benefits of loans under the Aatm Nirbhar Bharat Loan scheme of Aatm Nirbhar Bharat Yojna.
Some of the basic aid provided in the form of Aatm Nirbhar Bharat Loan includes:
- Under Aatm Nirbhar Bharat Loan of the self-reliant scheme, Rs. 3 lakh crore Collateral-free loan is to be provided to MSMEs to restart their blocked business aspirations under which 45 MSMEs got the benefits.
- MSMEs can borrow the sum up to 20% of their total outstanding credit on February 29, 2020, from the bank and Non-Banking Financial Company(s)(NBFCs). There would be no interest on the loan and a 100% credit guarantee on banks and NBFCs on principal and interest.
- Through the Aatm Nirbhar Bharat Loan facility, the Government is trying to assist stressed MSMEs who have Non-performing assets. Under this, the MSMEs are provided debts from the banks that are infused as equity. To facilitate the same, the Government has provided for Rs 20,000 crore of subordinate debts to MSMEs.
- A unique scheme facilitates easy access to credit for street vendors. Under this Aatm Nirbhar Bharat Loan scheme, bank credit to each vendor for the initial working capital of up to Rs 10,000.
- MGNREGA infusion of Rs 40,000 crore may help migrant workers’ distress when they return to their villages.
- Later in July 2020- Public sector banks sanctioned Rs. Twenty-four thousand two hundred sixty crores to more than 5.45 lakh MSMEs under credit line guarantee scheme within the 14 days of the announcement of this Aatm Nirbhar Bharat Loan via Aatm Nirbhar Bharat Abhiyan.
- The government has stretched the Emergency Credit Line Guarantee Scheme (ECLGS) by additional three months up to June 30, 2021 and enlarged its range to issue extra funding up to 40 % of outstanding loans as of Feb 29, 2020, as against 20 % earlier.
To Wrap Up
With all the reliefs and exemptions provided under the Aatm Nirbhar Bharat Yojana, Aatm Nirbhar Bharat Loan has played an influential role in assisting needy sectors in diminishing the darkness spread by the pandemic. In addition to this, Aatmnirbhar Sena is also playing its vital role by making the street vendors, hawkers, daily wage workers, migrant laborers and other affected the segment of Indian society amid COVID-19 pandemic familiar with the financial assistance by means of Aatm Nirbhar Bharat loan schemes introduced by the Indian government for a brighter and better future. Post this announcement of the self-reliant Nation mission, we can say that we lead the right path.
