How to take a loan under PM Vishwakarma Yojana?

PM Vishwakarma Yojana, also known as PM Vishwakarma Kaushal Samman, is a government scheme for artisians. It aims to provide financial support and numerous benefits to skilled artisans and craftspersons. This guide talks about the process of how to take a loan under PM Vishwakarma Yojana.

PM Vishwakarma Yojana is a central sector scheme launched by the Ministry of Micro, Small and Medium Enterprises (MoMSME). The main objective is to empower artisans and craftspeople engaged in specific trades. The scheme offers a range of services, including market linkage support, skill training, and incentives for digital transactions. It also offers collateral-free credit up to Rs 3 lakh.

Check Out: PM Vishwakarma Yojana Benefits: Here’s how it benefits Artisans and Craftspeople!

Key Highlights of PM Vishwakarma Yojana?

Here are the key highlights of PM Vishwakarma Yojana:

  • Interest Rate: The scheme offers an interest rate of 5% per annum.
  • Loan Amount: Eligible applicants can avail of loans of up to Rs 3 lakh.
  • Loan Tenure: The loan can be repaid over a period of 4 years.
  • Benefits: Borrowers can enjoy various benefits, including skill upgradation, toolkit incentives, credit support, marketing support, and incentives for digital transactions. They also receive a PM Vishwakarma Digital Certificate and ID Card.

Interest Rate and Loan Amount

The interest rate under PM Vishwakarma Yojana is fixed at 5% per annum. Additionally, the scheme offers different loan amounts and repayment tenures based on tranches:

First Tranche: Up to Rs 1 lakh with an 18-month repayment period.

Second Tranche: Up to Rs 2 lakh with a 30-month repayment period.

The first loan tranche is disbursed after the completion of 5-7 days of basic training, while the second tranche is available to skilled borrowers who have repaid the first tranche loan, maintained a standard loan account, and adopted digital transactions.

How to take a loan under PM Vishwakarma Yojana?

It is easy to avail of a loan under PM Vishwakarma Yojana. First of all, the applicant must satisfy the criteria. Registration, Eligibility, Documents, and Application Process can be found here which includes the entire guide for PM Vishwakarma Yojana.

AspectDetails
Interest Rate5% p.a.
Loan AmountUp to Rs 3 lakh
Loan Tenure4 years
Table 1: Interest Rate and Loan Amount

TrancheLoan AmountRepayment Tenure
1st TrancheUp to Rs 1 lakh18 months
2nd TrancheUp to Rs 2 lakh30 months
Table 2: Tranches, Loan Amounts, and Repayment Tenure

Benefits of PM Vishwakarma Yojana

PM Vishwakarma Yojana provides a range of benefits to its beneficiaries, including:

Skill Upgradation

The scheme offers training programs at vocational training centers. After completing 5-7 days of basic training, borrowers receive a training stipend of Rs 500 per day. Those interested can also apply for 15 days of advanced training at designated centers, which includes free boarding and lodging.

Toolkit Incentive

Borrowers who have undergone skill assessment and training can avail of toolkit incentives of up to Rs 15,000. These incentives are provided through e-RUPI/e-vouchers for the purchase of improved tools from designated centers.

Access to Affordable Credit

PM Vishwakarma Yojana provides collateral-free loans, making it accessible even to individuals with no credit history.

Marketing Support

Borrowers receive marketing support for their products and services, including assistance with physical and online presence, brand building, packaging, design, trade fair advertising, and more. The cost of certain areas is reimbursed by the National Committee for Marketing (NCM).

Incentive for Digital Transactions

The scheme promotes digital transactions and offers incentives for using the Unified Payments Interface (UPI). Beneficiaries can receive an incentive of Re. 1 per eligible digital transaction, up to 100 transactions per month.

Eligibility Criteria

To be eligible for PM Vishwakarma Yojana, applicants must meet the following criteria:

  • The applicant should be an artisan or craftsperson engaged in one of the 18 specified family-based traditional trades.
  • The minimum age of the applicant should be 18 years.
  • The applicant should not have availed loans under similar central or state credit-based schemes in the past 5 years.
  • Applicants employed in any government service are not eligible.
  • The scheme is limited to one member per family.

Trades Covered under Vishwakarma Yojana

The following trades are covered under PM Vishwakarma Yojana:

How to take a loan under PM Vishwakarma Yojana?
  • Wood-Based Trades
  • Iron/Metal/Stone-Based Trades
  • Gold/Silver-Based Trades
  • Clay-Based Trades
  • Leather-Based Trades
  • Architecture/Construction-Based Trades
  • Other Trades

Registration Process of PM Vishwakarma Yojana

Eligible applicants can register online on the PM Vishwakarma registration portal (www.pmvishwakarma.gov.in). Alternatively, one can visit Common Service Centres (CSCs) for assistance. No fees are charged for the enrollment process. The entire cost of registration and certificate issuance is borne by the government.

Required Documents

To apply for PM Vishwakarma Yojana, you will need the following documents:

  • Aadhaar Card
  • Mobile Number
  • Bank Account Details
  • Ration Card (Aadhaar numbers of all family members may be required)
  • In case of the absence of a bank account, the applicant will need to open one, and CSC will assist in the process.

PM Vishwakarma Yojana is a significant initiative that empowers artisans and craftspeople, offering them financial support, skill development, and more. By following the registration process and meeting the eligibility criteria, individuals engaged in the specified trades can benefit from this scheme and enhance their livelihoods.

Check Out: PM Vishwakarma Yojana Online Registration: Eligibility, Benefits, and Step-by-Step Guide

PM Vishwakarma Yojana is a promising opportunity for skilled artisans and craftspersons to improve their craft. It also lets to expand their businesses and secure affordable credit. The scheme’s various benefits, include skill training, toolkit incentives, and marketing support,. There are incentives for digital transactions too. All of this makes it a valuable resource for those in the specified trades. If you meet the eligibility criteria, register and access the support you need to thrive in your craft.

FAQs on how to take a loan under PM Vishwakarma Yojana

1. What is PM Vishwakarma Yojana?

PM Vishwakarma Yojana is a government scheme that provides financial support, skill development, and more to skilled artisans and craftspersons engaged in specific trades.

2. What is the interest rate under this scheme?

The interest rate is 5% per annum.

3. How much loan can I avail under PM Vishwakarma Yojana?

You can avail loans of up to Rs 3 lakh.

4. What is the loan repayment tenure?

The loan can be repaid over a period of 4 years, with different tranches having varying repayment tenures.

5. What benefits does the scheme offer?

The scheme offers benefits such as skill upgradation, toolkit incentives, credit support, marketing support, and incentives for digital transactions.

6. Who is eligible to apply for PM Vishwakarma Yojana?

Applicants engaged in specified family-based traditional trades, aged 18 or above, with no previous loans under similar schemes in the past 5 years are eligible.

7. Can government employees apply for this scheme?

No, individuals employed in government services, including their family members, are not eligible.

8. Are there any fees for the enrollment process?

No, there are no fees for enrolling in PM Vishwakarma Yojana.

9. How can I apply for this scheme?

You can register online on the PM Vishwakarma registration portal or visit Common Service Centres (CSCs) for assistance.

10. What documents are required to avail loan under PM Vishwakarma Yojana?

The following documents are required:
Aadhaar Card
Mobile number, and 
Bank account details. 
Aadhaar numbers of all family members (If no Ration Card)

11. Is there a penalty for prepayment of the loan?

No, there is no prepayment penalty after 6 months of loan disbursement.