Under the PM Vishwakarma Scheme, collateral-free credit

Solution

The PM Vishwakarma Scheme, launched with a financial outlay of ₹13,000 crore (FY 2023-24 to FY 2027-28), supports traditional artisans and craftspeople (“Vishwakarmas”) through recognition, credit, and skill development. Key features: • Free registration through Common Services Centres (CSCs) using a biometric-based PM Vishwakarma Portal. • Recognition via a PM Vishwakarma Certificate and ID card. • Collateral-free credit support: o First tranche: Up to ₹1 lakh o Second tranche: Up to ₹2 lakh o Thus, total support can go up to ₹3 lakh. • Concessional interest rate of 5%, with 8% interest subvention provided by the Government of India upfront to banks. • Additional benefits include toolkit incentive (₹15,000), training support, digital transaction incentives, and marketing assistance. Hence, in the first tranche, artisans can avail up to ₹1 lakh collateral-free credit.