PM Vishwakarma Scheme: Am I eligible for an MSME loan? What are the documents required and loan amount?

Prime Minister Narendra Modi on the occasion of Vishwakarma Jayanti, on September 17, launched the 'PM Vishwakarma Scheme' to help traditional craftsmen and local artisans across the country, who will be provided with financial assistance at a minimum interest rate without any collateral. The initiative for local artisans has been launched with a financial outlay of Rs 13,000 crore for five years.

The scheme aims to benefit around 30 lakh families of artisans and craftsmen. The goal of the scheme is to enhance the credit accessibility for the artisans and to improve the quality of products created by them.

Under the PM Vishwakarma Scheme there are certain eligibility criteria and different loan amounts will be offered at different interest rates to artisans and craftsmen.

What is the Pradhan Mantri Vishwakarma Scheme?

A Central government scheme launched by the Ministry of Micro, Small and Medium Enterprises, the Pradhan Mantri Vishwakarma Yojana will provide holistic and end-to-end support to artisans and craftspeople by providing them collateral-free credit, skill training, modern tools, incentives for digital transactions and market linkage support. The scheme will be provided to artisans and craftsmen who are engaged in the 18 trades as mentioned by the government including carpenter, blacksmith, potter, sculptor, cobbler, mason, toy maker, barber, and tailor, among others.

PM Vishwakarma Scheme: Eligibility

- Any artisan or craftsman who is working with hands and tools and is engaged in one of the above family-based traditional trades in an unorganised sector on a self-employment basis will be eligible.

- The beneficiary should be at least 18 years old at the time of registration.

- The beneficiary should have engaged in the concerned trade and should not have taken any other similar loans under government schemes.

- The benefits will be restricted to one member of a family including the husband, wife, and unmarried children.

- Those engaged in government service shall not be eligible under the scheme.

PM Vishwakarma Scheme: Documents

- Aadhaar, mobile number, bank details and ration card are mandatory for registration.

- In case of no ration card, the beneficiary can produce Aadhaar card details.

- The beneficiary should have a bank account.

PM Vishwakarma Scheme: Loan Amount and Interest rates

Under the scheme, the beneficiaries will be given a toolkit incentive of Rs 15,000 along with the initial collateral-free ‘Enterprise Development Loan’ of up to Rs 1,00,000 for a tenure of 18 months in the first tranche.

In the second tranche, a loan of up to Rs 2,00,000 will be provided at a concessional interest rate of 5  per cent.