How to get Loan From Pradhan Mantri Jan Dhan Yojana – Complete Information


How to get Loan From Pradhan Mantri Jan Dhan Yojana – Complete Information

Pradhan Mantri Jan-Dhan Yojana (PMJDY) was established by Prime minister Narendra Modi on 15th August 2014 from the ramparts of the Red Fort. It ensure access to financial services, namely Banking Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.

Account can be opened in any bank branch or Business Correspondent outlet.  Both rural and urban are to be covered under this scheme. Bank accounts will be opened for 6 crore account in villages and 1.5 crores in urban areas. Under the Pradhan Mantri Jan-Dhan Yojana  scheme anyone who is an indian citizen above age 10 years  and does not have a bank account, can open the account with zero balance.



To get a cheque book, account holder will have to fulfill minimum balance requirement. RuPay Debit Card will be issued with inbuilt Rs. 1 lakh personal accident insurance cover provided by HDFC Ergo and a life cover of Rs. 30,000/- provided by LIC.

Using this account four withdrawals are possible through all channels including ATM, internal transfers, RTGS / NEFT / Standing Instructions / EMI etc. Those who want to open an account under the PMJDY scheme will need a few documents.

Required documents are,

  • Passport
  • Driving license
  • Permanent Account Number (PAN) Card
  • Voter’s Identity Card issued by Election Commission of India
  • Job card issued by NREGA duly signed by an officer of the State Government
  • Letter issued by the Unique Identification Authority of India containing details of name, address and Aadhaar number, or
  • Any other document as notified by the Central Government in consultation with the Regulator: Provided that where simplified measures are applied for verifying the identity of the clients the following documents shall be deemed to be officially valid documents:
  1. Identity card with applicant’s Photograph issued by Central/State      Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions;
  2. letter issued by a Gazetted officer, with a duly attested photograph of the person.

Those who don’t have all the documents can open Small Accounts with banks, that is valid normally for a period of twelve months and have certain limits related to aggregate credits, aggregate withdrawals and balance. An Individual can hold only one Savings Bank Account and he / she is not allowed to have any other type of SB account. Mobile banking and SMS alert are available in this scheme.

  • Application form (English) for opening an account can be downloaded using the link

  • To download account opening form in Hindi

After six months of opening of the bank account, account holders can take loan benefit of up to Rs. 5000/-. 12% of interest will be charged by bank on overdraft facility in PMJDY.  To download Loan Application-cum-undertaking for Overdraft in BSBD Accounts under PMJDY  go to the link

Eligibility to grand loan are,

  • BSBD accounts, which are operated satisfactorily for at least six months
  • OD to be granted to the earning member of family, preferably women of the house.
  • There should be regular credits under DBT/ DBTL scheme/other verifiable sources
  • Account should be seeded with Aadhaar for avoiding duplicate benefit
  • BSBD account holder should not be maintaining any other SB account with any Bank/branch to ensure compliance with RBI directives.
  • Age of applicant between 18 years to 60 years.

*Minors, KCC/GCC borrowers, more than one member of the same family are not eligible.

Documents required  are,

  • Loan application-cum-undertaking
  • Arrangement letter duly accepted by the Account Holder

Other direct / special benefits of PMJDY

  • Interest on deposit
  • Accidental insurance cover of Rs.1.00lac
  • No minimum balance required. However, for withdrawal of money from any ATM with Rupay Card, some balance is advised to be kept in account
  • Life insurance cover of Rs. 30,000/-
  • Easy Transfer of money across India
  • Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts
  • After satisfactory operation of the account for 6 months, an overdraft facility will be permitted
  • Access to Pension, insurance products.

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