The PM Vishwakarma Loan Scheme or PM Vishwakarma Yojana is a flagship social welfare scheme by the Narendra Modi Government aimed at improving the socio-economic status of traditional artisans and craftspeople in India belonging to 18 trades.
Under PM Vishwakarma Loan Scheme, the central government is providing loan of up yo Rs. 3 Lakh in two tranche of 1 lak and 2 lak at a subsidized interest rate of 5% per annum. This loan is being provided without any guarantee by the borrower. Government will be issuing collateral guarantee to the banks for the loan.
Under this PM Vishwakarma Loan Scheme, artisans, also known as Vishwakarmas, receive holistic support, including credit access, skill upgradation, and tools to modernize their trades. This article provides an in-depth overview of the scheme, covering loan details, the process, interest rates, tenure, status, and the last date for application.
PM Vishwakarma Loan Scheme 2024 – Process
Below is the complete step by step process of PM Vishwakarma Loan Scheme 2024
STEP 1: Registration Under PM Vishwakarma Yojana
Artisans must first register on the PM Vishwakarma Portal pmvishwakarma.gov.in via Common Service Centers (CSCs). Aadhaar authentication is mandatory for registration. After registration and verification of details & documents, beneficiaries receive a PM Vishwakarma Certificate and ID Card.
See the complete process of PM Vishwakarma Yojana Online Registration.
STEP 2: Skill Up-gradation through Basic and Advanced Training
Once registered, artisans undergo Skill Assessment to evaluate their current skill levels. Basic Training (40 hours) is provided to improve skills and familiarize artisans with modern tools. A toolkit incentive under the Vishwakarma Toolkit Yojana of ₹15,000 is provided after Skill Assessment.
STEP 3: Loan Eligibility
After successfully completing the Basic Training, artisans are eligible for the first tranche of the loan up to ₹1,00,000. The second tranche (up to ₹2,00,000) becomes available after the artisan repays the first loan and either completes Advanced Training or adopts digital transactions.
STEP 4: Apply for Loan Disbursement
After clearing the eligibility for loan, you can apply online at the PM Vishwakarma Portal for the loan through CSC for first tranche of the loan. PM Vishwakarma Yojana loans are collateral-free (no guarantee is required), with a concessional interest rate of 5%. The government provides an 8% interest subvention directly to the lending institutions, making the loan more affordable.
You can check your loan interest using our PM Vishwakarma Yojana Loan Interest Calculator by entering your choice of amount and tenure.
STEP 5: Repayment of Loan
The loan is repaid in monthly installments. The first tranche has a repayment period of maximum 18 months, while the second tranche can be repaid over a period of 30 months.
STEP 6: Incentives for Digital Transactions
To promote digital empowerment, artisans who opt for digital transactions will receive ₹1 per digital transaction for up to 100 transactions per month. The beneficiaries will be provided incentives for
promoting digital transactions through UPI. The business UPI IDs of the Vishwakarmas will be captured
in the portal at the time of registration.
Also Read: Vishwakarma Free Silai Machine Yojana
Key Highlights of PM Vishwakarma Yojana Loan Scheme
| Feature | Details |
|---|---|
| Scheme Name | PM Vishwakarma Yojana |
| Target Beneficiaries | Traditional artisans and craftspeople (Vishwakarmas) |
| Loan Amount | Up to ₹3,00,000 (₹1,00,000 in 1st tranche, ₹2,00,000 in 2nd tranche) |
| Interest Rate | 5% per annum |
| Interest Subvention | 8% provided upfront by the Government |
| Repayment Tenure | 18 months for 1st tranche, 30 months for 2nd tranche |
| Toolkit Incentive | ₹15,000 for purchasing modern tools |
| Training Stipend | ₹500 per day for both Basic and Advanced Training |
| Eligibility | Artisans engaged in traditional trades, minimum 18 years of age |
| Last Date | 31st March 2028 |
| Participating Institutions | Scheduled Banks, Regional Rural Banks, Cooperative Banks, NBFCs, MFIs |
| Digital Transaction Incentive | ₹1 per eligible digital transaction (up to 100 transactions per month) |
Eligibility Criteria for PM Vishwakarma Loan Scheme
Traditional Trades: Artisans must be engaged in one of the traditional trades such as carpenters, goldsmiths, blacksmiths, masons, potters, etc.
Age: The artisan must be at least 18 years old at the time of registration.
No Previous Loans: The beneficiary must not have availed loans under other credit-based government schemes like PMEGP or MUDRA in the past five years. However, those who have fully repaid previous loans are eligible.
One Member per Family: Only one member per family can apply, with a “family” being defined as the husband, wife, and unmarried children.
PM Vishwakarma Loan Scheme Interest Rate and Tenure
- Interest Rate: The loan carries a 5% interest rate, subsidized by the government.
- Interest Subvention: The Government of India provides 8% interest subvention, effectively reducing the overall loan cost.
- Repayment Tenure: The loan can be repaid over 18 months for the first tranche and 30 months for the second tranche.
How to Check PM Vishwakarma Loan Status
You can check their PM Vishwakarma Yojana Loan status by logging in into the official PM Vishwakarma Portal using your registration number or by visiting the nearest common service center.
The loan approval and disbursement status can also be tracked through the banks or financial institution where the application was submitted.
Credit Guarantee under PM Vishwakarma Yojana Loan Scheme
Under the PM Vishwakarma Yojana Loan Scheme, a Graded Guarantee Cover has been introduced to provide financial security to artisans receiving loans. All loans sanctioned by lending institutions under this scheme will be covered by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), operating on a portfolio basis.
This credit guarantee system enables artisans to access loans without collateral, which strengthens their financial situation. The Graded Guarantee Cover provides different levels of risk coverage for both the first and second tranches of the loan.
Details of Credit Guarantee Coverage (First and Second Tranches):
- First Tranche Coverage (Loan up to ₹1,00,000):
- First Loss Default (0 to 7.5%): 100% coverage of the defaulted portfolio.
- Second Loss (Above 7.5% and up to 20%): 80% coverage of the defaulted portfolio.
- Third Loss (Above 20% and up to 50%): 60% coverage of the defaulted portfolio.
- Maximum guarantee coverage for the first tranche is 50% of the annual portfolio.
- Second Tranche Coverage (Loan up to ₹2,00,000):
- First Loss Default (0 to 5%): 100% coverage of the defaulted portfolio.
- Second Loss (Above 5% and up to 15%): 80% coverage of the defaulted portfolio.
- Maximum guarantee coverage for the second tranche is 15% of the annual portfolio.
Importance of Credit Guarantee
- Collateral-Free Loans: Artisans can obtain loans without needing to provide collateral, allowing them to expand their businesses without financial pressure.
- Easier Loan Approval: Credit guarantee encourages lending institutions to approve loans with more confidence, knowing that a significant portion of the default risk is covered.
- Financial Security: If an artisan defaults on a loan, the credit guarantee compensates the bank for the defaulted amount based on the coverage levels.
Summary of Guarantee Coverage
| Loss Level | First Tranche Coverage (Up to ₹1,00,000) | Second Tranche Coverage (Up to ₹2,00,000) |
|---|---|---|
| First Loss | 100% (0 to 7.5% default) | 100% (0 to 5% default) |
| Second Loss | 80% (7.5% to 20% default) | 80% (5% to 15% default) |
| Third Loss | 60% (20% to 50% default) | Not Applicable |
| Maximum Guarantee | 50% | 15% |
| Effective Coverage | 35.5% | 13% |
PM Vishwakarma Loan Scheme Last Date
The last date for applying under the PM Vishwakarma Yojana Loan Scheme is 31st March 2028. So, you have enough time to apply for the loan under this scheme. Revised last date of Vishwakarma loan scheme might be changed by the Government, so, it’s advisable to frequently check the PM Vishwakarma portal for updates.
Frequently Asked Questions (FAQs)
Who is eligible for the PM Vishwakarma Yojana Loan Scheme?
Traditional artisans and craftspeople, engaged in trades like carpentry, goldsmithing, blacksmithing, and others, who are above 18 years of age and have not availed similar loans in the past five years are eligible.
What is the maximum loan amount I can avail of under this scheme?
The total loan amount is ₹3,00,000, provided in two tranches – ₹1,00,000 in the first tranche and ₹2,00,000 in the second tranche.
Is there any collateral required for the loan?
No, the loans under the PM Vishwakarma Yojana Loan Scheme are collateral-free.
What is the interest rate for the loan?
The loan carries a concessional interest rate of 5% per annum, with the Government providing an 8% interest subvention to reduce the burden on artisans.
How can I apply for this scheme?
You can apply through Common Service Centers (CSCs) or the PM Vishwakarma Portal by completing the Aadhaar-based registration process.
The PM Vishwakarma Yojana Loan Scheme is a transformative initiative aimed at uplifting traditional artisans by providing them with affordable credit, skill development, and modern tools, all of which contribute to the overall growth of the Vishwakarma community in India. Keep an eye on the portal for updates regarding the last date to apply!