What is financial assistance Scheme?
Financial assistance provided by the Government of India stands to monetary support given to individuals, families, Student and businesses in need by the government or other organizations.
In India, various financial assistance schemes aim to improve the lives of citizens by providing financial aid for various purposes such as savings, agriculture, and banking.
These government-run financial schemes assist in enhancing the quality of life for the people.
Let’s check Important Financial Assistance Schemes: Employees’ Provident Fund Organization (EPFO), Employees’ Pension Scheme, Public Provident Fund , Direct
Benefit Transfer (DBT), PM–Kisan Yojana, and Jan Dhan Yojana.
Table of Contents
1. Employees’ Provident Fund (EPF): Secure Your Retirement Savings
The Employee Provident Fund is the foundation of India’s retirement savings scheme for all employees, designed to ensure financial security in their golden years after retirement. This fund is managed by the Employees Provident Fund Organization (EPFO).
Its main objective is to teach the habit of saving among the employees and also to provide them financial security after retirement.
Notably, EPF allows employees to make multiple payments in multiple ways, such as paying for the purchase of a house or paying in advance for medical treatment or making payments in case of unemployment, making it a multipurpose financial tool in today’s times. That is why EPF is the popular Financial Assistance Schemes for the private and governement employees.
- Benefits: Employees contribute 12% of their salary, employers match this contribution. The accumulated amount earns interest, helping employees build a substantial retirement fund. Also, they can claim advance as previously mentioned.
- Official Source: EPFO India
2. Employees’ Pension Scheme (EPS): Lifetime Pension Benefits After Service
The Employees’ Pension Scheme (EPS) is a retirement benefit scheme for employees in India, providing monthly pensions after retirement or in cases of disability or death. Main eligibility for EPS requires a minimum of 10 years of service, and members must contribute through the Employees’ Provident Fund (EPF). To apply, eligible employees are automatically enrolled when they join the EPF.
- Eligibility: Employees who are part of the EPF scheme.
- Benefits: A monthly pension is provided based on the number of years worked and the amount contributed.
- How to Apply: Employees are automatically enrolled when they join the EPF scheme.
- Official Source: EPFO India
3. Public Provident Fund (PPF): Long-Term Savings with High Interest and Tax Benefits
The PPF Scheme is a government-backed savings plan designed to help individuals build long-term savings with attractive interest rates and tax benefits.
- Eligibility: Any Indian citizen can open a PPF account and a PPF accounts can also be opened for minors by their guardians.
- Benefits:
- Attractive Interest Rate: PPF benefits 2024 everyone Earning interest at 7.9% per annum, compounded yearly.
- Tax Benefits: PPF Contributions up to ₹1.5 lakh are eligible for tax deductions under Section 80C of the Income Tax Act.
- Loan Facility: Best thing of this scheme is After 1 year of account opening, you can take a loan against the PPF balance.
- Partial Withdrawals: After 5 years, you can withdraw up to 50% of the PPF account balance.
- You can open a PPF account by submitting Form-1 at any designated post office, nationalized bank, or online (if your bank provides the facility).
- How to Apply: You can open a PPF account by submitting Form-1 at any designated post office, nationalized bank, or online (if your bank provides the PPF facility).
- Official Source: India Post – PPF
4. Direct Benefit Transfer (DBT): Direct Financial Support Without Intermediaries
DBT is Direct Benefit Transfer which aims to provide financial assistance directly to the beneficiaries. By transferring money directly to the bank accounts of individuals, the government ensures that financial assistance reaches only those who need it the most, which will reduce delays and corruption.
It empowers citizens by giving them direct access to the benefits they are entitled to. It is an important step towards improving performance and transparency in governance.
- Eligibility: Beneficiaries of various government welfare programs.
- Benefits: DBT ensures that financial aid reaches individuals’ bank accounts directly, reducing delays and corruption in the governance. This method provides a quick way to receive immediate money help.
- How to Apply: DBT is a scheme but more than a scheme, it is a system, so if you need it along with any government scheme, you can take advantage of it. Individuals need to link their Aadhaar number with their bank account to receive benefits.
5. Pradhan Mantri Jan Dhan Yojana (PMJDY): Accessible Banking for Every Citizen
Like our other important schemes, Jan Dhan Yojana is also one of the most revolutionary Financial Assistance Schemes made by the Modi government in 2014.
Its aim is to ensure access to basic banking services to every Indian citizen and promote basic banking. This initiative launched in 2014 provides a platform for individuals to save money and receive government benefits in their account. This scheme emphasizes banking as a powerful tool for economic empowerment and promoting financial literacy.
- Eligibility: Any Indian citizen can open an account under this scheme.
- Benefits: It offers a zero-balance savings account, with a debit card, and an accidental insurance coverage of ₹2 lakh. This program provides free money help by facilitating easier access to banking services.
- How to Apply: You can apply at any public or private bank branch or through the bank’s online platform.
6. Airavata Scheme: Vehicle Purchase Subsidy for Self-Employment in Karnataka
The Airavata Scheme is a flagship scheme aimed at increasing self-employment opportunities for the Scheduled Cast (SC) and Scheduled Tribe (ST) people in Karnataka. Under this scheme, financial assistance is provided to the residents of Karnataka with a subsidy of Rs 5,00,000 to purchase a vehicle and earn a livelihood as a cab driver, thereby promoting social and economic equality for the underprivileged and marginalized people.
- Eligibility: Individuals belonging to SC/ST communities who has a valid driving license with a commercial cab badge they can apply.
- Benefits: Financial assistance to purchase vehicles, access to subsidized loans of 5,00,000 rupees, and opportunities for self-employment for them.
- How to Apply: You can submit application through authorized government portals or local transport offices.
- Official Source: Karnataka Backward Classes Welfare Department
8. India’s Pension Schemes Explained: NPS, OPS, and More
A pension is a regular payment that employees receive from the government of india or any state or an employer after you retire from your service. In India, the government has various pension schemes to support people financially when they are no longer working, usually after the age of 60.
How Pension Schemes Work:
During employee’s working life, he or his employer might contribute to a pension fund (like Employees’ Provident Fund (EPF) or National Pension Scheme (NPS). This money gets deposited in the national fund and when employee retires, you start receiving it in the form of monthly payments. The main purpose of pension is that it helps you financially in those days when you are not working i.e. you have retired and you are not getting regular salary.
There are many types of pension schemes run by the government and private entities. But few popular government pensions plans are:
Types of Pension Schemes in India
- Old Pension Scheme (OPS)
- National Pension Scheme (NPS)
- Unified Pension Scheme (UPS)
- Atal Pension Yojana (APY)
- Employees’ Pension Scheme (EPS)
- Assured Pension Schemes
7. Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0): Affordable Housing for All
The Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) aims to provide affordable housing for urban residents, ensuring “Housing for All.” This scheme benefits Economically Weaker Sections (EWS), Low-Income Groups (LIG), and Middle-Income Groups (MIG) by offering financial assistance and interest subsidies on housing loans.
- Eligibility: Annual income up to Rs. 9,00,000 for EWS, LIG, and MIG groups.
- Benefits: Interest subsidy of up to 4% on housing loans under the Credit Linked Subsidy Scheme (CLSS) and many more.
Conclusion
Whether you’re a farmer, employee, or business owner, the government’s financial assistance schemes are designed to support you in various stages of life. Explore these schemes today, and please make sure you’re taking full advantage of the benefits our government offers.
FAQs for Financial Assistance Schemes
1. What is the Employees’ Provident Fund (EPF) and how does it benefit me?
Answer: The EPF is a retirement savings scheme designed to provide financial security for employees after retirement. Both employees and employers contribute 12% of the employee’s salary to the EPF, and the accumulated amount earns interest. EPF offers benefits like tax savings, early withdrawal for emergencies, and long-term financial security.
2. How do I apply for the Public Provident Fund (PPF)?
Answer: You can apply for a PPF account by submitting Form-1 at a designated post office or any nationalized bank. Many banks also allow opening a PPF account online if you hold an account with them. This long-term savings scheme offers attractive interest rates and tax benefits.
3. What is Direct Benefit Transfer (DBT), and how does it work?
Answer: DBT is a system through which the government directly transfers financial assistance to beneficiaries’ bank accounts, reducing delays and eliminating intermediaries. To receive DBT benefits, you must link your Aadhaar number with your bank account. This is the most popular Financial Assistance Schemes nowadays.
4. Who is eligible for the PM-Kisan Samman Nidhi Yojana, and what are its benefits?
Answer: Small and marginal farmers who own less than 2 hectares of cultivable land are eligible for the PM-Kisan Yojana. Under this scheme, farmers receive ₹6,000 annually, paid in three installments, directly into their bank accounts to support agricultural activities.
5. Can anyone open an account under the Pradhan Mantri Jan Dhan Yojana (PMJDY)?
Answer: Yes, any Indian citizen can open a Jan Dhan Yojana account. This scheme provides access to basic banking services with zero-balance accounts, a debit card, and benefits like accidental insurance coverage of ₹2 lakh. It is designed to promote financial inclusion for all citizens.
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