The upliftment of the poor happens not through charity, but empowerment. And while there seems to be enough work done in terms of earmarking relief funds for the poor, what will really come in handy for them is an opportunity to work and earn their means of livelihood.
“Give a man a fish, he won’t go hungry for a day. Teach a man to fish, he won’t go hungry for life.”
Bearing in mind the sentiment, the government of India has launched the PM Visvas yojana – a welfare scheme offered to the poor wherein interest subvention will be offered to Self Help groups with 100% OBC members and OBC individuals who have taken a loan for various income-generating activities. These may include loans from Lending institutions that have signed MoA with the NBCFDC.
Eligibility criteria for the PM Visvas Yojana 2021
In order to avail of the benefits of the PM Visvas yojana 2021, the following eligibility criteria need to be met:
- Members of Backward Classes, as notified by the Central Government/State Governments.
- The applicant’s annual family income should be less than ₹3 lakh.
- SHGs must be registered with NRLM/NULM/NABARD with more than two years of credit history.
- SHGs or individuals must have made all repayments timely to be eligible for the interest subvention offered by the state government.
- All OBC Antodaya Anna Yojana cardholders and OBC individuals facing three or more Deprivators in terms of SECC-2011, as per the records available at the specific BDO office shall be considered eligible for interest subvention.
Salient Features of the PM Visvas scheme
- The maximum loan amount limit for Self-help groups is ₹4 lakh.
- The maximum loan amount limit for individuals is ₹2 lakh.
- The maximum subvention amount is 5% per annum.
- Caste eligibility for SHGs – all members to be OBC. SHGs promoted by NRLM/NABARD/NULM.
- Caste eligibility for individuals – caste to be under OBC list of Centre or state.
- The annual Family income cap for SHG – less than ₹3 lakh for each member.
- The annual Family income cap for individuals – less than ₹3 lakh.
Mode of payment for the subvention under the PM Visvas Yojana
The ideal model is considered to be through Direct Transfer of Subvention amount into the operating account of SHG or individual.
List of documents needed to avail the PM Visvas scheme
- Recent passport size photos
- Aadhaar card
- Bank passbook first page (offering Bank account details)
- Certificate to confirm the underprivileged/disadvantaged group
Summing it up
Supporting small businesses is a necessary move, especially when a country like India intends to support the “Make in India” cause. By doing this, the central government encourages more small entrepreneurs to dream to make it big and by offering the necessary finances, it offers the platform for individuals or organisations to soar.
The scheme is a perfect solution to put India on the radar; at par with other developed nations where small entrepreneurs have as much a chance of making it big as big companies.