PM VISHWAKARMA SCHEME

PM VISHWAKARMA SCHEME Scheme for extending Collateral free ‘Enterprise Development Loans’ to artisans and craftspeople who work with their hands & tools. Objectives:
  • To enable the recognition of artisans & craftspeople as Vishwakarma
  • To provide skill upgradation
  • To provide support for better and modern tools
  • To provide the intended beneficiaries an easy access to collateral free credit
  • To provide incentive for digital transactions
  • To provide a platform for brand promotion and market linkage.
Extent of loan & repayment:
  • Term Loans upto Rs.1,00,000/- in Ist Tranche to be repaid in 18 months; and
  • Term Loans upto Rs.2,00,000/- in 2nd Tranche to be repaid in 30 months
Eligibility:

  1. An Artisan or craftsperson working with hands and tools and engaged in trades such as Carpenter, Boat Maker, Armourer, Blacksmith (Lohar), Hammer and Tool Kit Maker, Locksmith, Sculptor (Moortikar, Stone carver), Stone breaker, Goldsmith (Sunar), Potter (Kumhaar), Cobbler (Charmakar/ Shoesmith /Footwear Artisan), Mason (Raaj Mistri), Basket/Mat/Broom Maker/Coir Weaver, Doll & Toy Maker (Traditional), Barber (Naai), Garland Maker (Malakaar), Washerman (Dhobi), Tailor (Darzi), Fishing Net Maker and who is bonafide / nominal member of the Bank, is elilgible to get benefits under the Scheme.

  2. The applicant should be an Indian Resident, registered under the Vishwakarma Scheme and minimum age of the beneficiary should be 18 years on the date of registration;

  3. The beneficiary should be engaged in any of the trades, as above, on the date of registration and should not have availed loans under similar credit-based schemes of Central or State Governments for self-employment / business development e.g. PMEGP, PM SVANidhi, MUDRA in the past 5 years;

  4. Beneficiaries of MUDRA and SVANidhi, who have fully repaid their loan, will be eligible under PM Vishwakarma. This period of 5 years will be calculated from the date of sanction of the loan.
  5. The registration and benefits under the scheme shall be restricted to one member of the family consisting of the husband, wife and unmarried children.
  6. A person in government service and his/her family members shall not be eligible under the scheme.
Rate of Interest & Charges
  • Concessional Rate of Interest at 5 per cent per annum for both Ist and 2nd tranche of loan and charges are NIL. The interest subvention by the Government of India will be to an extent of 8% and provided upfront to the banks.
Documents required
  • Aadhar Card
  • Voter ID Card
  • PAN Number (Optional)
  • Mobile Number
  • Proof of occupation
  • PM Vishwakarma training Certificate provided by National Skill Qualification Framework (NSQF).
  • PM Vishwakarma Digital Certificate
  • PM Vishwakarma ID Card
  • Caste Certificate (If applicable)
Other terms & conditions:
  1. Beneficiaries who have completed Basic Training will be eligible to avail the first tranche of credit support of up to Rs. 1 lakh.

  2. The second loan tranche will be available to beneficiaries who have availed the 1st tranche and maintained a standard loan account and have adopted digital transactions in their business or have undergone Advanced Training. They should have repaid the first loan tranche before availing the second tranche.

  3. The disbursal of credit under the Scheme will be linked with attainment of specific milestone of training. The beneficiary will be eligible for first loan tranche on completion of 5-7 days Basic Training providing by MSDE.
  4. No collateral will be required to avail the loan under the scheme;
  5. Credit information report will be required for those who have a credit history, for availing benefits under the credit component, so as to exclude any defaulter from availing credit again under the Scheme.
  6. In case of a beneficiary not having a credit history, the Banks or Financial Institutions will not exclude them from availing credit and they will also not insist upon Credit Information Report.
  7. No prepayment penalty will be charged from artisans and craftspeople after 6 months of loan disbursement.
  8. The beneficiary will be eligible for the second tranche loan when the first tranche loan is fully repaid. Further, the second loan will not be granted before six months of the disbursement of first tranche loan.
  9. End-use of the bank finance shall be ensured.
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