Millions of artisans and craftspeople in India, engaged in traditional professions, are still unable to expand their skills due to limited resources and a lack of capital. To address this problem, the central government has launched the Pradhan Mantri Vishwakarma Yojana (Prime Minister Vishwakarma Scheme). The scheme aims to provide financial and technical assistance to those engaged in traditional occupations passed down through generations, who work with their hands and tools.
Under the Pradhan Mantri Vishwakarma Yojana, people working in hereditary professions such as masons, tailors, cobblers, carpenters, goldsmiths, and garland makers are being encouraged to pursue self-employment and business expansion. The government wants this group to be free from dependence on expensive moneylenders and to be able to access institutional credit at low-interest rates.
The benefits of the scheme are available only to those working in the unorganised sector or running their own small businesses. Applicants must be at least 18 years old at the time of registration and must not have availed of any similar government loan scheme in the last five years. Furthermore, only one member per family is eligible for assistance under the scheme, with a family defined as including husband, wife, and unmarried children.
The biggest advantage of this scheme is that eligible artisans receive collateral-free loans of up to ₹3 lakh. This amount is disbursed in two phases. In the first phase, a loan of ₹1 lakh is provided for a period of 18 months. After its successful utilisation and completion of the required training, a second loan of ₹2 lakh is provided for 30 months.
The interest rate under the Pradhan Mantri Vishwakarma Yojana is also very affordable. Beneficiaries only have to pay 5 percent interest, while the remaining interest is borne by the government. This reduces the financial burden on the artisans and allows them to expand their businesses with confidence. The government is also emphasising connecting artisans with digital transactions through this scheme. Beneficiaries who adopt digital payments receive an incentive for each transaction, enabling them to connect with modern payment systems. They are also provided with skills training, identity cards, and necessary equipment to help improve both their work and income.