PM Vishwakarma Scheme: The maximum credit support and interest rate explained

Under the scheme, craftsmen and artisans will receive several financial and technical support from the Central government. They can avail subsidised loans of Rs 1 lakh and Rs 2 lakh, in two different tranches. These loans will have a concessional interest rate of just 5 per cent.

Under the scheme, craftsmen and artisans will receive several financial and technical supports. (Image Credits: Reuters)

The central government recently announced the launch of the PM Vishwakarma Scheme on August 17 on the occasion of Vishwakarma Diwas. The Rs 13,000 crore scheme is aimed at improving the training, quality, and outreach of traditional artisans and craftsmen. The ambitious scheme is expected to help around 30 lakh craftsmen like weavers, goldsmiths, blacksmiths, laundry workers and barbers, among others. The scheme will initially support people engaged across 18 trades and more traditional vocations will be included later.

"The scheme aims to strengthen and nurture the 'Guru-Shishya parampara' or family-based practice of traditional skills by artisans and craftsmen working with their hands and tools," the statement from the government read.

What are the benefits of the Vishwakarma scheme?

Under the scheme, craftsmen and artisans will receive several financial and technical supports from the central government. Firstly, they will be able to avail subsidised loans of Rs 1 lakh and Rs 2 lakh, in two tranches. These loans will have a concessional interest rate of just 5 per cent. So craftsmen will only need to pay back Rs 1.05 lakh and Rs 2.10 lakh when taking these loans.

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These craftsmen will also be able to receive an incentive of Rs 15,000 to buy modern tools for their respective trades. Under the upskilling programs, craftsmen will also be receiving Rs 500 in daily stipend during the course of the training. The government has introduced these provisions to help craftsmen improve their trade through the inclusion of modern techniques as well as equipment.

Other incentives and benefits include support for digital transactions and marketing. These provisions aim to boost the reach of craftsmen’s services and products along the domestic and international markets.

To avail of the scheme, individuals need to be Indian citizens and be practising a traditional craft or trade. The government will verify the claims and issue a unique identification for each tradesperson under the scheme through which benefits will be connected.

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