The Pradhan Mantri Jan Dhan Yojana (PMJDY) Loan will be available to the account holder of PMJDY. Only those who linked Aadhar Card in the bank can avail this loan.
As incentives to new account holders, they can avail an over-draft (loan) of up to Rs 5000 rupees on their savings account which will be given at the discretion of the Bank. This loan amount would then be further raised to Rs 15,000, if there is timely repayment of the first loan taken by the account holder.
This provision of overdraft on each savings account is to primarily make cheap credit available to ordinary citizens in India who would have to otherwise depend on money lenders who charge very high interest rates.
The overdraft will only be given to those savings accounts which have been linked to an Aadhaar Unique Id, this is to prevent fraud and ensure that individuals do not open multiple savings accounts with the aim of cornering the credit facilities.
The Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme has taken a leaf from the Microfinance Sector in India where Microfinance Companies initially provide a small loan and only later increases the size of the loan disbursement when the microfinance client has successfully repaid his first loan. This ensures that only credit worthy individuals with the financial capacity to repay, get loans.
As incentives to new account holders, they can avail an over-draft (loan) of up to Rs 5000 rupees on their savings account which will be given at the discretion of the Bank. This loan amount would then be further raised to Rs 15,000, if there is timely repayment of the first loan taken by the account holder.
This provision of overdraft on each savings account is to primarily make cheap credit available to ordinary citizens in India who would have to otherwise depend on money lenders who charge very high interest rates.
The overdraft will only be given to those savings accounts which have been linked to an Aadhaar Unique Id, this is to prevent fraud and ensure that individuals do not open multiple savings accounts with the aim of cornering the credit facilities.
The Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme has taken a leaf from the Microfinance Sector in India where Microfinance Companies initially provide a small loan and only later increases the size of the loan disbursement when the microfinance client has successfully repaid his first loan. This ensures that only credit worthy individuals with the financial capacity to repay, get loans.