PM Vishwakarma Yojana — ₹15,000 Toolkit, Collateral-Free Loans of ₹1 Lakh + ₹2 Lakh at 5%, Skill Training with Stipend for 18 Traditional Trades
Video Explanation & Insights
Rajasthan RIPS 2024 and Vishwakarma Yuva Udyami Protsahan Yojana: every state benefit explained
3 videos on this topic
What the scheme gives an artisan
Launched on 17 September 2023 with an outlay of ₹13,000 crore for five years, PM Vishwakarma is the Ministry of MSME's scheme for traditional artisans and craftspeople who work with their hands and tools — the Vishwakarma trades. It recognises the artisan, upgrades skills and tools, gives collateral-free credit at a subsidised rate, and helps with digital payments and marketing. Rajasthan's own VYUPY and RIPS packages and the central PMEGP sit alongside it for those who want to grow beyond the scheme's ₹3 lakh.
| Component | Benefit | Notes |
|---|---|---|
| Recognition | PM Vishwakarma certificate and ID card | Identity as an artisan for all scheme benefits |
| Skill training | Basic training 5–7 days; advanced training 15 days; stipend ₹500 a day | Through empanelled training centres; basic training is the gate to the toolkit and the loan |
| Toolkit incentive | ₹15,000 e-voucher for trade tools | Redeemable at designated outlets after basic training |
| Credit — first tranche | ₹1 lakh collateral-free loan, 18-month tenure | 5% interest to the beneficiary; the government subvents up to 8% to the bank; guarantee fee borne by the government (CGTMSE cover) |
| Credit — second tranche | ₹2 lakh collateral-free loan, 30-month tenure | For beneficiaries who repaid the first tranche, run a standard loan account and adopted digital transactions or took advanced training |
| Digital incentive | ₹1 per digital transaction, up to 100 transactions a month | Paid to the beneficiary's account |
| Marketing | Quality certification, branding, e-commerce onboarding (GeM), trade fairs, publicity | Through the National Committee for Marketing |
Who can register
- •An artisan or craftsperson working with hands and tools in one of the 18 family-based traditional trades, in the unorganised sector on a self-employment basis; minimum age 18 at registration.
- •The 18 trades: carpenter (suthar), boat maker, armourer, blacksmith (lohar), hammer and tool-kit maker, locksmith, goldsmith (sonar), potter (kumhaar), sculptor / stone carver / stone breaker, cobbler (charmakar / footwear artisan), mason (raajmistri), basket / mat / broom maker and coir weaver, doll and toy maker (traditional), barber (naai), garland maker (malakaar), washerman (dhobi), tailor (darzi), fishing-net maker.
- •Engaged in the trade on the date of registration; must not have taken a similar credit-based scheme of the central or state government (PMEGP, PM SVANidhi, Mudra) in the previous five years — except where the loan is fully repaid.
- •One member per family (husband, wife and unmarried children); government employees and their family members are not eligible.
Registration to loan
- 1Step 1 — Register on the PM Vishwakarma portal through a Common Service Centre with Aadhaar, mobile, bank account and ration card details (biometric authentication).
- 2Step 2 — Three-stage verification: gram panchayat / urban local body, district implementation committee, screening committee; certificate and ID card issued.
- 3Step 3 — Basic skill training (5–7 days) with stipend; toolkit e-voucher of ₹15,000 released.
- 4Step 4 — First loan tranche of ₹1 lakh from a scheduled bank, RRB, small finance bank, cooperative bank, NBFC or MFI at 5%; repay over 18 months.
- 5Step 5 — Second tranche of ₹2 lakh over 30 months on standard repayment and digital adoption or advanced training; marketing support and digital incentives continue.
PM Vishwakarma vs PMEGP vs Ambedkar / state schemes
| PM Vishwakarma | PMEGP | Rajasthan VYUPY (Vishwakarma Yuva Udyami Protsahan) | |
|---|---|---|---|
| Who | Artisans in 18 traditional trades, age 18+ | Any new manufacturing or service enterprise, 8th pass for projects above ₹10 lakh / ₹5 lakh | Rajasthan residents aged 18–45 (or a firm / company where such a person holds 51%); manufacturing and service — not trading, real estate or mining |
| Size | Loans up to ₹3 lakh in two tranches | Projects up to ₹50 lakh (manufacturing) / ₹20 lakh (service) | Term loans up to ₹2 crore (subsidy restricted to ₹2 crore); up to 30% may be working capital |
| Benefit | 5% interest, ₹15,000 toolkit, training stipend | 15–35% margin-money subsidy | Interest subsidy of 8% on loans up to ₹1 crore and 7% on ₹1–2 crore, plus 1% for women, SC/ST, divyang, rural and artisan promoters (effective cap 8%); margin 25% |
| Collateral | None | Bank norms; CGTMSE possible | Per bank / state norms |
| Stacking | Cannot be combined with another credit-based scheme in the last five years | Cannot be combined with another central subsidy on the same project | Not for beneficiaries of PMEGP or SCLCSS in the last five years; RIPS 2024 reliefs (75% SGST, electricity duty, stamp duty) apply alongside |
Do not confuse the two Vishwakarma schemes. PM Vishwakarma is the central artisan scheme described on this page. Rajasthan's Vishwakarma Yuva Udyami Protsahan Yojana (VYUPY, formerly the Mukhyamantri Laghu Udyog Protsahan Yojana) — the subject of the channel's videos below — is a state interest-subsidy scheme for enterprises up to ₹2 crore, and it combines with RIPS 2024's SGST, electricity-duty and stamp-duty reliefs. An artisan can start under PM Vishwakarma and move to VYUPY or PMEGP when the project outgrows ₹3 lakh, provided the same loan is not subsidised twice.
PM Vishwakarma: questions we are asked
₹1 lakh in the first tranche (18 months) and ₹2 lakh in the second (30 months), collateral-free, at 5% interest to the beneficiary.
An e-voucher of ₹15,000 for trade tools, released after basic skill training.
Yes — ₹500 a day during the 5–7 day basic and 15-day advanced training.
Yes — tailor (darzi) and barber (naai) are among the 18 trades.
Not for the same enterprise within five years of a credit-based scheme; move to PMEGP or a state package when the project outgrows ₹3 lakh.
On the PM Vishwakarma portal through a Common Service Centre, with Aadhaar-based verification.
Trade-fit check, registration and verification follow-up, bank loan coordination, and the step-up to PMEGP, RIPS or VYUPY as the business grows.