Indian Government Schemes for Financial & Social Support
Stand-Up India Scheme
The Stand-Up India Scheme aims to promote entrepreneurship among women, Scheduled Castes (SC), and Scheduled Tribes (ST). It provides loans ranging from ₹10 lakh to ₹1 crore for setting up greenfield enterprises in manufacturing, services, or trading sectors.
Benefits:
- Financial Support: Large loans for business establishment.
- Focus on Inclusion: Encourages participation of marginalized groups.
- Promotes Entrepreneurship: Supports new ventures and startups.
- Employment Generation: Boosts job creation through business growth.
Pradhan Mantri Mudra Yojana (PMMY)
The Pradhan Mantri Mudra Yojana (PMMY) is a government scheme to provide loans up to ₹10 lakh to small businesses and entrepreneurs. It supports non-corporate, non-farm small enterprises through partner financial institutions.
Benefits:
- Collateral-Free Loans: No need for security or guarantor.
- Three Categories:
- Shishu: up to ₹50,000
- Kishor: ₹50,000 to ₹5 lakh
- Tarun: ₹5 lakh to ₹10 lakh
- Encourages Entrepreneurship: Supports startups and small businesses.
- Promotes Employment: Boosts job creation through business expansion.
- Simplified Process: Easy access to credit for underserved sectors.
PMKVY for Technical Institutes (PMKVY-TI)
Pradhan Mantri Kaushal Vikas Yojana for Technical Institutes (PMKVY-TI) is a skill development initiative under the broader PMKVY scheme, focusing on technical institutions like engineering and polytechnic colleges.
Objectives:
- Enhance employable skills of students.
- Provide industry-relevant training.
- Encourage entrepreneurship among technical students.
Benefits:
- Free skill training and certification.
- Improved job prospects through industry-aligned courses.
- Financial support for training programs in technical institutes.
Job Seeker vs. Job Creator
A job seeker looks for employment opportunities provided by others, typically working for an organization or employer.
A job creator generates employment opportunities by starting and running businesses or ventures, employing others, and contributing to economic growth.
Key Difference:
- Job seekers rely on existing opportunities.
- Job creators innovate and provide opportunities for others.
Ayushman Bharat (PM-JAY)
Ayushman Bharat (PM-JAY) is a flagship health insurance scheme by the Government of India. It provides free health coverage of up to ₹5 lakh per family per year to economically vulnerable families.
Benefits:
- Free Healthcare: Cashless treatment at empaneled hospitals.
- High Coverage: Covers 10 crore+ poor and vulnerable families.
- Comprehensive Care: Includes hospitalization, surgeries, and medicines.
- Access to Quality Services: Both public and private hospitals included.
- Focus on Preventive Care: Wellness centers for early diagnosis and treatment.
Pradhan Mantri Awas Yojana (PMAY)
The Pradhan Mantri Awas Yojana (PMAY) is a government initiative in India aimed at providing affordable housing to urban and rural poor. It includes subsidies on home loans for Economically Weaker Sections (EWS), Low-Income Groups (LIG), and Middle-Income Groups (MIG).
Benefits:
- Affordable Housing: Financial assistance for housing construction or improvement.
- Subsidized Interest Rates: Interest subsidies up to 6.5% on home loans.
- Inclusive Coverage: Focus on women, SC/ST, and differently-abled beneficiaries.
- Urban & Rural Impact: Addresses housing needs in both urban and rural areas.
- Improved Infrastructure: Development of better living standards and facilities.
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a government-backed life insurance scheme in India for individuals aged 18-50. It provides a life cover of ₹2 lakh for an annual premium of ₹436.
Benefits:
- Affordable Premium: Low-cost life insurance accessible to all.
- Financial Security: ₹2 lakh paid to the nominee in case of the policyholder’s death.
- Simple Enrollment: Easy registration through banks and auto-debit from accounts.
- Wide Accessibility: Covers all eligible individuals with a bank account.
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
The Pradhan Mantri Suraksha Bima Yojana (PMSBY) is an accidental insurance scheme for individuals aged 18-70 years. It offers coverage of ₹2 lakh for accidental death or total disability and ₹1 lakh for partial disability, with an annual premium of just ₹20.
Benefits:
- Low-Cost Coverage: Affordable accidental insurance for all.
- Comprehensive Protection: Covers accidental death and disabilities.
- Simple Enrollment: Easy registration through banks with auto-debit.
- Wide Reach: Accessible to all eligible individuals with a bank account.
Types of Bank Accounts and Their Uses
Savings Account:
- For individuals to save money and earn interest.
- Suitable for salaried people and daily savings.
Current Account:
- For businesses and frequent transactions.
- No interest but allows unlimited transactions.
Fixed Deposit (FD) Account:
- Locks money for a fixed period with higher interest.
- Ideal for long-term savings.
Recurring Deposit (RD) Account:
- Regular monthly savings with fixed interest.
- Good for systematic savings.
Demat Account:
- For holding and trading securities like shares.
- Essential for investors in the stock market.
NRI Account:
- For Non-Resident Indians to manage income in India.
- Includes NRE, NRO, and FCNR accounts.
Each account serves specific financial needs, helping individuals and businesses manage money effectively.
Atal Pension Yojana (APY)
Atal Pension Yojana (APY) is a social security scheme of the Government of India which aims to provide pension facilities to people in the unorganized sector. Under this scheme, a pension of ₹1,000 to ₹5,000 per month is available at the age of 60 years. This pension depends on the contribution of the subscribers.