You can also avail the benefit of interest free loan under these government schemes, see here!

The central government runs many schemes for its citizens, which cater to the needs of different people. Often, when people need to start their business, they have to borrow money. When they want to expand their business they need money. In such a situation, if they take regular loan from the bank then they have to pay higher interest rate. However, there are some government schemes where loans are provided without interest. Let us know what these schemes are.

Pradhan Mantri Swanidhi Yojana:

Prime Minister Narendra Modi started this scheme in 2020. Interest free loan is provided under Pradhan Mantri Swanidhi Yojana. Under this scheme, loans are given to street vendors without interest. Under this scheme, there is a provision for loans ranging from Rs 10,000 to Rs 50,000. To avail the benefits of the scheme, any street vendor can contact his nearest bank and apply for it.

Lakhpati Didi Scheme:

Prime Minister Narendra Modi launched this scheme on 15 August 2023. The objective of this scheme was to empower women. Only women get the benefit of this scheme. Under this scheme, women are given training first. Then they are provided financial assistance ranging from Rs 1 lakh to Rs 5 lakh to start their business, i.e. loan is given without interest.

Pradhan Mantri Mudra Yojana:

Under this scheme run by the Central Government, loans are provided to entrepreneurs for business purposes. Although this loan is not interest free, the interest rate is very low. Therefore, if a business wants to take a loan for its needs, it can also do so under the Pradhan Mantri Mudra Yojana. There are three categories of this loan: Shishu, Kishor and Tarun. Shishu loan can be up to Rs 50,000, Kishore loan can be from Rs 50,000 to Rs 5 lakh and Tarun loan can be from Rs 5 lakh to Rs 10 lakh.

Interest Free Loan by UP Government:

Uttar Pradesh Chief Minister Yogi Adityanath has announced the provision of interest-free loans to encourage youth for startups. The Uttar Pradesh government will provide interest-free loans of up to Rs 500,000 for startups to one lakh youth every year. Uttar Pradesh government will soon implement this scheme named Mukhyamantri Yuva Udyami Vikas Abhiyan.