NEW DELHI — Banks have sanctioned loans to the tune of INR 1,751 crore to poor artisans such as blacksmiths, masons, potters, carpenters and tailors under the PM Vishwakarma scheme as of October 31, the Parliament was informed.
Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha that the government has taken various measures to overcome the challenges faced by borrowers, particularly in rural areas and to facilitate easy flow of credit to cater to their needs.
According to figures provided by the minister, over 2.02 lakh accounts have been opened under the PM Vishwakarma scheme with a total sanctioned loan amount of INR 1,751.20 crore.
The government launched PM Vishwakarma on September 17, 2023, to provide end-to-end support to artisans and craftspeople who work with their hands and tools. These traditional artisans and craftspeople are referred to as 'Vishwakarmas'. The financial outlay for the scheme from FY 2023-2024 to FY 2027-28 is INR 13,000 crore.
According to data compiled by the National Skill Development Corporation (NSDC), the PM Vishwakarma Scheme has made considerable headway with 2.58 crore applications submitted so far, of which 23.75 lakh applicants have been successfully registered for receiving benefits under the scheme after the three-stage verification process.
Close to 10 lakh people have received toolkit incentives of up to INR 15,000 through e-vouchers under the scheme to buy modern tools suitable for their occupation.
The loans extended to the artisans carry a 5 per cent interest rate, subsidised by the government. Interest Subvention: The Government of India provides 8 per cent interest subvention, effectively reducing the overall loan cost. The loan can be repaid over 18 months for the first tranche and 30 months for the second tranche.
The PM Vishwakarma Scheme covers artisans and craftspeople of 18 trades who work with their hands and tools. The objective of the scheme is to help traditional artisans and craftspeople to become entrepreneurs and self-reliant.
Formal training in the form of Basic Skill Training has been initiated for the upgradation and modernisation of traditional skills of artisans and craftspeople under the PM Vishwakarma Scheme across 26 States/UTs of the country.