Government Personal Loan Scheme: Eligibility & How To Apply

January 10, 2023 Sahil

Life is full of unpredictable or unforeseen circumstances that almost all of us encounter at some point in time. These situations often have a considerable impact on our savings and finances. Thankfully, financial products like Personal Loans can help us during such challenging times. Even the Indian Government is doing its part for providing easy to access Personal Loans.

Let us learn more about the Government Personal Loan, the documents required, the eligibility criteria, and how you can apply for it.

What is a Personal Loan?

A Personal Loan is a type of unsecured loan that can be availed of to fulfill any kind of big-ticket needs. Be it for higher education, medical expenses, wedding, international travel or more, an emergency Personal Loan can help finance such requirements without any hassle.

The top feature and benefits of a Personal Loan are as follows:

No Collateral Needed – Personal Loans are collateral-free, which means you’re not required to put up any assets as security against the loan amount.
No Restriction on End-Usage – You can use a Personal Loan for almost any purpose if it is for a genuine reason.
Maximum Loan Amount of Up To ₹30 Lakh – Some financial institutions offer Personal Loans of up to ₹30 Lakh. This can help you out with financing any requirement easily.
Attractive Interest Rates – These days, you can find Personal Loans at attractive interest rates that can help reduce your EMIs as well.
Flexible Repayment Period – Most banks and NBFCs now offer Personal Loans with a long repayment tenure. Some even provide the flexibility of repaying the loan over a period of up to 60 months.
Complete Online Process – Nowadays you can complete the entire loan application process in just a few clicks. Simply visit the website of your chosen lender and get started.
Minimal Documents Required – To apply for a Personal Loan, the documents required include – KYC documents, address proof, professional documents, and financial documents.

What is the Government Personal Loan Scheme?

Nowadays, apart from banks and Non-Banking Financial Companies (NBFCs), you can also avail of Government Personal Loans. These loans are designed to financially assist people from all walks of life, especially those in dire need of funds.

Some of the best Government Personal Loan schemes available in India are:

Pradhan Mantri Jan Dhan Yojana (PMJDY) – The PMJDY scheme was launched as a financial inclusion program that ensures affordable access to financial services across India. These services include the availability of savings bank accounts, need-based credit, remittances, insurance & pension for weaker or low-income groups, and more.
Ayushman Bharat Yojana – The Ayushman Bharat Yojana scheme is a national public health insurance program. It was introduced to provide access to health insurance free of charge to low-income Indian citizens.

Eligibility Criteria for Personal Loans

The eligibility criteria for Personal Loans are as follows:

Age – You must be at least 22 years old at the time of loan application and 58 years old at the time of loan maturity.
Citizenship – You must be holding Indian citizenship.
Work Experience – You must have a job experience of at least 1 year.
Employment – You must have a full-time job with at least 2 months’ stable employment at the current job.
Monthly Income – Your monthly income should be at least ₹20,000
Credit Score – You should have a credit score of 750 & above.