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Top six small loan schemes for poor people


1. Pradhan Mantri Mudra Yojana: This scheme provides access to institutional finance to unfunded micro or small business units by extending loans up to Rs.10 lakh for manufacturing, processing, trading, services and activities allied to agriculture.

2. Pradhan Mantri Awas Yojana- Urban: In pursuance of the Government vision of facilitating housing to all by the year 2022, Government has launched Pradhan Mantri Awas Yojana- Urban. This scheme aims to provide assistance to all states in addressing the housing requirement of urban poor including Economically Weaker Section or Low Income Group.

3. Central Sector Interest Subsidy Scheme: It is a unique scheme which pivots around the vision that no student wanting to pursue higher education is denied of the opportunity if one is financially week. This scheme benefits all categories of economically weaker students for pursuing professional or technical courses in India and intends to provide affordable higher education. Under this scheme, full interest subsidy on educational loans up to Rs.7.50 lakh is available during the period of moratorium on loans availed under the scheduled banks.

4. Deendayal Antyodaya Yojana National Rural Livelihoods Mission: This scheme aims at promoting poverty reduction through building strong institutions to the economically weaker section, specifically women and allowing these establishments to get entry to a number of financial offerings and livelihood services. It has a provision for interest subvention, to cover the difference between the lending rate of the banks and 7 per cent per annum, on all credit from the banks or financial institutions availed by women Self Help Groups, for a maximum of Rs.3 Lakh per SHG.

5. Deendayal Antyodaya Yojana National Urban Livelihoods Mission: It is a centrally sponsored scheme to reduce poverty and vulnerability of the urban poor by enabling them to access gainful self-employment and skilled wage employment opportunities.

6. Differential Rate of Interest Scheme: Under the DRI Scheme, banks provide finance up to Rs.15,000/- at a concessional rate of interest of four per cent per annum to the weaker sections of the community for engaging in productive and gainful activities.