Loan up to ₹2,00,000 at 5% Interest! PM Vishwakarma Yojana Will Turn Artisans into Entrepreneurs
UPPSC | MPPSC | SSC | BANKING | RAILWAY Exam Oriented Special Report 2026
Introduction
PM Vishwakarma Yojana is an ambitious initiative of the Government of India aimed at providing effective financial assistance, skill training, and market linkage to traditional artisans, craftsmen, and handicraft workers. The scheme is a major effort to transform traditional artisans into self-reliant entrepreneurs by offering loans up to ₹2,00,000 at a concessional interest rate of just 5 percent. This support helps improve both their livelihood and business sustainability.
Objectives of the Scheme
The primary objective of PM Vishwakarma Yojana is to integrate traditional crafts and skills into the mainstream economy. The scheme focuses on empowering traditional skills, providing financial assistance for business expansion, promoting digital transactions, and strengthening domestic marketing and exports. From an examination perspective, this scheme is directly linked to government policies and socio-economic development.
Key Benefits
One of the most significant features of the scheme is low-interest credit support. In the first phase, beneficiaries receive a loan of ₹1,00,000, followed by a second-phase loan of ₹2,00,000 upon timely repayment. Both phases carry an interest rate of only 5 percent, making bank credit affordable and encouraging entrepreneurship.
Skill Development and Training
Under the scheme, beneficiaries receive Basic Training and Advanced Training. During the training period, a stipend of ₹500 per day is provided. This initiative helps reduce unemployment, improve skill quality, and promote self-reliance.
Toolkit and Digital Incentives
After completing training, beneficiaries receive a toolkit assistance of ₹15,000, which is a grant and not a loan. Additionally, digital transactions are encouraged through an incentive of ₹1 per transaction, strengthening the cashless economy.
Marketing and Branding Support
The government assists artisans with product branding, quality certification, and onboarding on e-commerce platforms such as GeM. This enables access to national and international markets.
Eligibility and Traditional Trades
The scheme is open to Indian citizens aged 18 years and above who are engaged in traditional artisan trades. Eligible trades include carpenter, blacksmith, goldsmith, tailor, washerman, barber, potter, and several other traditional occupations.
Impact on Society and Economy
PM Vishwakarma Yojana promotes self-reliance, reduces unemployment, makes traditional skills economically viable, and strengthens digital financial inclusion.
Important Facts for Examinations
| Aspect | Key Facts |
|---|---|
| Loan Amount | ₹1,00,000 + ₹2,00,000 |
| Interest Rate | 5 percent per annum |
| Training Stipend | ₹500 per day |
| Toolkit Assistance | ₹15,000 |
| Digital Incentive | ₹1 per transaction |
Conclusion
PM Vishwakarma Yojana provides financial, technical, and marketing support to traditional artisans, enabling them to become successful entrepreneurs. The scheme strengthens the vision of Atmanirbhar Bharat and serves as a highly relevant government initiative for competitive examinations.
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