India has been fighting a range of issues and one of those pressing issues is poverty from which millions of homes are suffering and battling. Despite the number of growth and development that are measured every year, a large part of the population still struggles for necessities like food, clean water, a roof, and electricity. India cannot celebrate or reach the tag of ‘developed’ unless poverty is eradicated from everyone’s households.

To deal effectively with this issue and equip the marginalised communities against poverty, the government of India launched Ration Cards for people who fall under the Below Poverty Line (BPL). With the help of the BPL Ration Cards, people can afford adequate amounts of food and other essential commodities at subsidised rates offered by the ration shops set up by the government.

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Specifics Of The BPL Ration Cards

A BPL Ration Card is issued to those families who fall below the poverty line, a benchmark by which the government distinguishes among people based on criteria such as income or socio-economic status.

The main aim of launching the BPL Ration Card is to deliver adequate food to the people living in every corner of India through the Public Distribution System (PDS) aka the ration shops.

However, there are numerous other benefits associated with the BPL Ration Card such as health insurance, availing scholarships, and affordable loans.

Schemes Related To Loans For BPL Cardholders

To improve the living conditions of families that fall below the poverty line, the government collaborated with banks and other financial institutions to offer loans with significantly lower interest rates to help them help themselves by investing the amount in profitable ventures and desires such as starting a small business, for education, or others. The amount of the loan ranges from 2 lakhs to 10 lakhs.

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Characteristics Of The Loans Given Under This Govt Scheme

• Rate of Interest: The loans taken by BPL Ration cardholders have a subsidised rate of interest which is usually lower than the market’s average rate in the range of 4% to 7% per annum.

• Terms of Repayment: The conditions of repayment are flexible and people can repay the amount in 5-15 years. This time helps them settle, allows them to repay the amount in smaller instalments, and avoids overburdening them mentally as well.

• Absence of Collateral: To avail of loans by using BPL Ration Cards, people don’t have to submit any form of collateral as these are unsecured loans. This enables people to avail of funds without worrying about pledging their minimum assets.

• The Subsidy provided by the Government: For some government schemes, the government has measures to grant subsidies on interest rates which makes loans more affordable and realistic.

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What Is The Application Process For BPL Cards?

The application process is uncomplicated and straightforward.

The BPL Ration Cardholders can go to any public or designated financial institution that provides such loans to ask for the form.

They are requested to produce relevant documents such as the BPL Ration Card, proof of income, residence proof, etc. after which the bank will scrutinise the documents, check relevant factors, and then release the funds.

Conclusion

The BPL Ration Cards were introduced to provide support to families who fall below the poverty line so that they can improve their living conditions and make a path for a better future. This initiative is a step taken against the monstrous waves of poverty and ensures that no family in India remains deprived of the necessities of life.

If you’ve any queries, you can contact the National Portal of India by writing to their official mail.