Government Scheme Offers ₹3 Lakh Loan at 5% Interest: Check Eligibility
Starting a business can be difficult when arranging funds becomes a major hurdle. The PM Vishwakarma Scheme offers financial support to eligible traditional artisans and craftspeople working in the unorganised sector. Under the scheme, beneficiaries can access loans of up to ₹3 lakh at an effective interest rate of 5%, subject to the scheme's eligibility and lending conditions.
Applicants must be at least 18 years old at the time of registration. The benefits are available only for the trades covered under the scheme.
One of the key features is that beneficiaries do not need to provide collateral or security for the loan.
However, applicants must meet the scheme's credit and eligibility requirements. Those who have taken certain similar government loans in the previous five years may not qualify, although specific exceptions apply to some repaid loans, including loans under schemes such as Mudra and SVANidhi.
First Instalment: ₹1 Lakh
The first tranche provides a loan of ₹1 lakh. Before receiving it, applicants must complete the required verification process and undergo five days of basic training.
After successful verification and completion of the required process, beneficiaries receive a PM Vishwakarma Digital Certificate and ID card, which help them access the scheme's benefits.
The first loan has a repayment period of 18 months.
Second Instalment: ₹2 Lakh
Eligible beneficiaries can subsequently access the second tranche of ₹2 lakh, taking the total loan support to ₹3 lakh.
The second loan tranche has a repayment period of 30 months, subject to fulfilment of the applicable conditions.
Some key eligibility conditions include:
This can make the credit facility particularly useful for eligible artisans and craftspeople who may find it difficult to provide assets as security while seeking business funding.
Applicants should keep their required documents and information ready and complete the verification process at the CSC. Once registered and verified, beneficiaries can access the applicable benefits under the scheme.
What Is the PM Vishwakarma Scheme?
The PM Vishwakarma Scheme is designed to support artisans and craftspeople who use traditional skills, tools and manual work to earn their livelihood. The scheme focuses on people engaged in specified traditional trades and aims to help them strengthen and expand their businesses.Applicants must be at least 18 years old at the time of registration. The benefits are available only for the trades covered under the scheme.
PM Vishwakarma Loan Amount and Interest Rate
Eligible beneficiaries can receive a total loan of up to ₹3 lakh, which is provided in two stages. The effective interest rate for the beneficiary is 5%, after the applicable government interest subsidy.One of the key features is that beneficiaries do not need to provide collateral or security for the loan.
However, applicants must meet the scheme's credit and eligibility requirements. Those who have taken certain similar government loans in the previous five years may not qualify, although specific exceptions apply to some repaid loans, including loans under schemes such as Mudra and SVANidhi.
How Is the ₹3 Lakh Loan Given?
The total loan amount is divided into two instalments:First Instalment: ₹1 Lakh
The first tranche provides a loan of ₹1 lakh. Before receiving it, applicants must complete the required verification process and undergo five days of basic training.
After successful verification and completion of the required process, beneficiaries receive a PM Vishwakarma Digital Certificate and ID card, which help them access the scheme's benefits.
The first loan has a repayment period of 18 months.
Second Instalment: ₹2 Lakh
Eligible beneficiaries can subsequently access the second tranche of ₹2 lakh, taking the total loan support to ₹3 lakh.
The second loan tranche has a repayment period of 30 months, subject to fulfilment of the applicable conditions.
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Who Can Apply for PM Vishwakarma Loan?
The scheme is aimed at eligible artisans and craftspeople working in traditional trades covered by the government.Some key eligibility conditions include:
- The applicant must be at least 18 years old.
- The applicant must be engaged in an eligible traditional trade.
- Only one member of a family can register under the scheme.
- Government employees and their families are excluded from the scheme's benefits.
- Applicants must satisfy the applicable conditions relating to previous government loans.
Is Collateral Required for PM Vishwakarma Loan?
No. Collateral is not required for availing the PM Vishwakarma loan under the scheme.This can make the credit facility particularly useful for eligible artisans and craftspeople who may find it difficult to provide assets as security while seeking business funding.
Where and How to Apply for PM Vishwakarma Scheme?
Eligible applicants can begin the registration process through a Common Service Centre (CSC). The registration process is carried out using biometric authentication.Applicants should keep their required documents and information ready and complete the verification process at the CSC. Once registered and verified, beneficiaries can access the applicable benefits under the scheme.
PM Vishwakarma Scheme: Key Points at a Glance
- Maximum loan: ₹3 lakh
- Interest rate: 5% effective interest for beneficiaries
- First loan: ₹1 lakh
- Second loan: ₹2 lakh
- First loan repayment period: 18 months
- Second loan repayment period: 30 months
- Collateral: Not required
- Minimum age: 18 years
- Registration: Through Common Service Centres
- Authentication: Biometric verification
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