Shishu Mudra To SVANidhi, Here Are Options To Secure A Rs 50,000 Loan On Aadhaar Card

Explore avenues for a Rs 50,000 Loan on Aadhaar card through the PMMY’s Shishu Mudra Loan, PM SVANidhi, and from banks and NBFCs with minimal documentation
Aadhaar Cards, 
Aadhaar Cards, Loan, NBFCs

If you need money for personal use or to set up a small business, and with minimal documentation and without any collateral, then you can try for a Rs 50,000 loan on your Aadhaar Card.

It is one of the many options from the government-backed Pradhan Mantri Mudra Yojana (PMMY) to the urban-centric Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), and non-secured loans from banks and/or non-banking financial companies (NBFCs).

Here are three options, with the first two providing working capital for small businesses up to Rs 50,000, and the third one providing it for personal use.

Shishu Mudra Loan

In a bid to empower micro and small business owners, the Government of India has introduced the PMMY to facilitate microcredit up to Rs. 10 lakh. It extends loans to the non-corporate, non-farm sector income generating activities of micro and small entities, the official website says.

Within this scheme, the Shishu Mudra Loan category, which provides loans up to Rs 50,000, supports entrepreneurs in their early stages. The application process is streamlined through the ‘Udyamimitra’ portal, where Aadhaar and mobile number base OTP validation is enough, thus eliminating the need for any collateral. Mudra loans are also extended by banks, NBFCs, and microfinance institutions (MFIs) with just Aadhaar and bank documentation, and without the need for any collaterals.


The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme, launched on June 1, 2020, aims to uplift urban street vendors by offering collateral-free working capital loans up to Rs 50,000. The scheme incentivises regular repayments with a 7 per cent interest subsidy and provides cashback for digital transactions up to Rs 1,200 per year. All lending institutions, including NBFCs/MFIs extend this loan.

This scheme also uses an Aadhaar-based e-KYC, and does not need any collaterals. Street vendors and/or hawkers vending in urban areas, as on or before March 24, 2020, including the vendors of surrounding peri-urban and rural areas can apply.

Aadhaar Card Loans From Banks And NBFCs

The Aadhaar Card Loan that NBFCs advertise on their website just means it is a minimum documentation loan. Do note that you are not borrowing money against your Aadhaar card. Here, the Aadhaar Card serves as the primary know-your-customer (KYC) document, and the biometrics will expedite the verification process for swift loan approval.

Individuals seeking non-secured loans based on Aadhaar authentication can explore options from scheduled commercial banks, private banks, and NBFCs. Loan amounts and interest rates are

contingent on credit scores and monthly income, and individuals with credit score above 700 can easily secure a loan of Rs 50,000 without collaterals.

Alongside Aadhaar, applicants may need to submit residential proof, salary slips, and bank statements for a seamless loan application process.

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