Government Scheme: The central government is continuously introducing schemes to provide financial stability to small business owners and people engaged in traditional professions. In this regard, Prime Minister Narendra Modi’s Pradhan Mantri Vishwakarma Yojana has emerged as a crucial initiative. The aim of this scheme is to empower artisans who have been earning their livelihood for years through their skills and hard work, but were unable to progress due to lack of capital.
Who is this scheme for?
The Pradhan Mantri Vishwakarma Yojana is specifically designed for people who work with their hands and tools. This includes artisans engaged in traditional and low-income professions such as masons, tailors, carpenters, cobblers, and garland makers. The scheme focuses on the unorganized sector and self-employed individuals, enabling them to connect their traditional art with the modern market.
Important Eligibility Conditions
To avail of this scheme, the applicant must be at least 18 years old. They must also be working in one of the 18 traditional professions included in the scheme. Only one member per family will be eligible for the scheme, with the definition of family limited to husband, wife, and unmarried children. Additionally, neither the beneficiary nor any member of their family should be employed in government service. Individuals who have availed of a similar loan-based scheme from the central or state government in the last five years will not be eligible for this scheme.
Loan of up to ₹3 lakh without collateral
The biggest feature of the Pradhan Mantri Vishwakarma Yojana is that it provides artisans with an enterprise loan of up to ₹3 lakh without any collateral. This amount is provided in two phases. In the first phase, a loan of ₹1 lakh is given, which has to be repaid in 18 months. After completing the necessary training and fulfilling the conditions related to digital transactions, a loan of ₹2 lakh is provided in the second phase, with a repayment period of 30 months.
Relief through low-interest rates
Under this scheme, artisans are provided with loans at a very low-interest rate. Beneficiaries are charged only 5 percent interest, while the government bears the remaining interest burden. The government subsidizes approximately 8 percent of the interest, significantly reducing the overall cost of the loan and alleviating financial pressure on the artisans.
Emphasis on Digital Transactions and Training
The scheme includes special incentives to connect artisans with the digital ecosystem. A beneficiary receives an incentive of up to ₹1 for every digital payment, valid for a maximum of 100 transactions per month. In addition, the scheme provides skill training, identity cards, and assistance with work-related tools, enabling artisans to improve both the quality of their work and their income.