Modi Government Scheme: Nowadays, everyone wants to start their own business. If you are tired of your job and considering starting a business but are deterred by rising costs, there is no need to worry; the government is offering assistance through the PM Vishwakarma Scheme. The government provides loans of up to ₹3 lakh to eligible individuals. Let us understand the details of this scheme.
What is the loan for?
Loans under the PM Vishwakarma Scheme are granted to artisans and craftspeople—those who work with their hands and tools. It is intended for individuals who are involved in traditional family businesses in the unorganised sector. Applicants must be at least 18 years old to register. Loans are provided only for activities specified by the government.
What is the interest rate?
Applicants must not have availed of loans under similar schemes from the central or state governments in the past five years; however, exceptions may apply for previously repaid loans under schemes like Mudra and SVANidhi. No collateral (security) is required to obtain the loan. Borrowers are charged an interest rate of 5% (this rate applies after the subsidy is factored in).
In how many instalments is the loan disbursed?
Under the scheme, the loan is disbursed to the applicant in two instalments. A total loan of ₹3 lakh is sanctioned. The first instalment consists of ₹1 lakh. Applicants must undergo verification and complete five days of basic training. Following verification, they receive a digital ID, a PM Vishwakarma Digital Certificate, and a PM Vishwakarma ID card to access the scheme’s benefits. The first loan tranche has a repayment tenure of 18 months. The second instalment is a loan of ₹2 lakh. The second instalment is to be repaid within 30 months.
Who is eligible for the loan?
Under this scheme, only one person per family is permitted to register and avail of the benefits. Loans are provided to the husband, wife, and unmarried members of the family. Government employees cannot avail of the benefits of this scheme.
Where to apply?
To register for the Central Government’s Vishwakarma Scheme, one must visit a Common Service Center. Subsequently, registration can be completed via the dedicated portal by following a simple process. Every registration is carried out using biometric authentication.