When taking such a loan, it is very important to repay the installments on time. If the installment is missed, the interest subsidy may get canceled and the loan burden may increase along with penalty. Interest-free loan schemes are not only financial help but also a means of social justice.
In India, interest free loan means two things. One, which charges absolutely no interest. Second, in which the government itself bears the burden of interest through interest subvention. Here are the best no interest loan schemes to help students, farmers and small traders. The government has started these schemes with the aim of uplifting the weaker sections.
PM SVANidhi – Scheme for Street Vendors
The central government has started this scheme for small traders in urban areas. First loan of ₹ 10,000 is available. If you repay it on time, you get an interest subsidy of 7%. By including ‘cashback’ and subsidy received from digital transactions, this loan becomes almost interest free. PM Vishwakarma Yojana: This scheme has been started in 2023 for traditional artisans like carpenters, goldsmiths, potters. There is only 5% interest in it, but a major part of it is given by the government in the form of subsidy. This is a loan without any guarantee (collateral free).
Terms to keep in mind
When taking such a loan, it is very important to repay the installments on time. If the installment is missed, the interest subsidy may get canceled and the loan burden may increase along with penalty. Last point: Interest-free loan schemes in India are not just financial help, but they are a means of improving people’s living standards and social justice. Eligible people can find the scheme as per their need and apply through government portals like JanSamarth.