LOAN FOR BPL CARD HOLDERS

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Loan for BPL Card Holders in India: Complete Guide to Government & Bank Schemes

Millions of families in India hold BPL (Below Poverty Line) cards, which identify households with limited income and resources. To support financial inclusion and self-reliance, the Government of India, public sector banks, regional rural banks, and microfinance institutions offer special loan schemes for BPL card holders. These loans are designed to help poor families start small businesses, meet emergency needs, improve housing, or support education and livelihood activities.

This article explains how BPL card holders can get loans, available schemes, eligibility, benefits, and how to apply.

What Is a BPL Card?

A BPL card is issued by state governments to families living below the poverty line. It enables access to various government welfare schemes, subsidies, and financial assistance programs, including priority loans and low-interest credit facilities.

Can BPL Card Holders Get Loans?

Yes. BPL card holders are eligible for loans, mainly under government-backed schemes and self-employment programs. These loans usually have:

  • Lower interest rates

  • Flexible repayment options

  • Minimal or no collateral

  • Subsidy or interest subvention benefits

Top Loan Schemes for BPL Card Holders

1. Pradhan Mantri Mudra Yojana (PMMY)

BPL card holders can apply for Mudra Loans to start or expand small businesses.

  • Loan Amount: Up to ₹10 lakh

  • Categories: Shishu, Kishore, Tarun

  • Collateral: Not required

  • Best For: Street vendors, small shops, artisans, service providers

2. National Rural Livelihood Mission (NRLM) – SHG Loans

Under NRLM, BPL families—especially women—can access loans through Self Help Groups (SHGs).

  • Interest: Subsidized (as low as 7% in many states)

  • Purpose: Self-employment, agriculture, dairy, tailoring, micro-units

  • Support: Training + financial assistance

3. PM SVANidhi Loan (for Street Vendors)

For BPL card holders working as street vendors.

  • Loan Amount: ₹10,000 to ₹50,000

  • Interest Subsidy: 7%

  • Repayment: Easy monthly installments

4. Stand-Up India Scheme

For SC/ST and women entrepreneurs, many of whom are BPL card holders.

  • Loan Amount: ₹10 lakh to ₹1 crore

  • Purpose: Greenfield enterprises

  • Collateral: As per bank norms

5. State Government BPL Loan Schemes

Many states run special loan and subsidy schemes for BPL families, such as:

  • Small business loans

  • Housing and sanitation loans

  • Agriculture and allied activity loans

Check with District Rural Development Agency (DRDA) or local panchayat offices.

Eligibility Criteria for BPL Loan Schemes

While criteria vary by scheme, common requirements include:

  • Valid BPL Ration Card

  • Indian citizenship

  • Age between 18 to 60 years

  • Basic business plan (for self-employment loans)

  • SHG membership (for NRLM loans)

Documents Required

To apply for a loan as a BPL card holder, you may need:

  • BPL Ration Card

  • Aadhaar Card

  • Voter ID or other address proof

  • Passport-size photographs

  • Bank account details

  • Income certificate (if required)

  • Business plan or activity details

How to Apply for Loan for BPL Card Holders

Through Banks

  • Visit nearby public sector banks, regional rural banks, or cooperative banks

  • Ask for Mudra Loan or government-sponsored loan schemes

Through SHGs

  • Join a Self Help Group (SHG) under NRLM

  • Apply for group-based or individual loans

Online Application

  • Apply via official portals like Mudra Loan portal or PM SVANidhi portal

  • Use CSC (Common Service Centre) for assistance

Benefits of Loans for BPL Card Holders

  • Encourages self-employment and entrepreneurship

  • Reduces dependence on moneylenders

  • Supports financial inclusion

  • Helps improve family income and living standards

Important Tips Before Applying

  • Apply only through official banks or government portals

  • Avoid agents promising “guaranteed loans”

  • Keep copies of all submitted documents

  • Repay on time to build a good credit history

Loan for BPL Card Holders 

Swaran Jayanti Shari Rozgar Yoyana - SJSRY

LOAN AMOUNT: The maximum of Rs. 50,000. Subsidy is 15% of the project cost, subject to maximum of Rs. 7,500/-. The benefeciary are required to contribute 5% of the project cost as margin money in urban self employment programme.

ELIGIBILITY:

You must be holder of BPL (Below Poverty Line) ration card.

Age should be between 18 yrs to 50 yrs.

Knowledge of project, which you intends to start.

Two passport type photographs.

You must have availability of work space.

Qualification : Illiterate to 10th FAILED.

Conclusion

A loan for BPL card holders is a powerful tool to support livelihood, small businesses, and financial stability. With multiple government-backed schemes, low interest rates, and easy eligibility, BPL families can now access formal credit and work towards economic independence.

If you or your family hold a BPL card, visit your nearest bank or CSC today and explore the right loan scheme for your needs.

Loan for BPL Card Holders

 

For more details click here or visit http://www.delhi.gov.in/