PM VISHWAKARMA

Ministry of MSME, Government of India

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 Salient Aspects of PM Vishwakarma
A. Coverage B. Benefits
1. Families of traditional artisans and 1. PM Vishwakarma Certificate & ID Card
craftspeople: Guru-Shishya Parampara 2. Credit Support
2. Initially 18 traditional trades covered 3. Skill Upgradation
3. Planned for 30 lakh beneficiaries 4. Toolkit Incentive
4. Excluding those covered in similar GoI 5. Incentive for Digital Transaction
or State schemes in the past 5 years 6. Marketing Support
C. Process D. Roll-out
1. Application based Registration 1. Coverage: 1 person per family
2. Verification by Gram Panchayat Head/ 2. Bulk covered in first two of five years
ULB Executive Head and by District 3. Launch of scheme on 17.09.2023 with
Implementation Committee registration of 1 lakh beneficiaries
3. Screening Committee for oversight 4. EFC approved on 18.07.2023
4. Three-tier Implementation Framework 5. CCEA approved on 16.08.2023
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 Benefits under PM Vishwakarma
S.N Type Description No. of beneficiaries
1. Registration Recognition as Vishwakarma: PM Vishwakarma Certificate & ID Card 30 lakh
2. Credit Support (a) Collateral free Enterprise Development Loans: 15 lakh
Upto Rs 1 lakh (First Tranche for 18 months repayment)
Upto Rs 2 lakh (Second Tranche for 30 months repayment)
(b) Concessional Rate of Interest @ 5%
subject to interest subvention cap upto 8% by GoI
(Credit Oversight Committee may revise subvention cap keeping in
view prevailing interest rates)
(c) Credit Guarantee fees to be borne by GoI
3. Skill Upgradation (a) Skill Identification followed by 5 days Basic Training Basic: 30 lakh
(b) 15 days or more Advanced Training Advanced: 3 lakh
(c) Training Stipend: Rs 500 per day
4. Toolkit Incentive Rs 15,000 initially through DBT and progressively through e-RUPI/e- 30 lakh
vouchers
5. Incentive for Digital Re. 1 per transaction for maximum 100 transactions per month 30 lakh
Transaction
6. Marketing Support Corpus of Rs 250 crore for quality certification, branding, advertising, 30 lakh
publicity and other marketing activities
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 Credit Support
Enterprise Development Loan

The total quantum of loan assistance would be Rs. 3,00,000/-

1. First Tranche upto Rs 1 lakh (with 18 months repayment)
- Basic Skill training is required to avail first tranche of credit support.

2. Second Tranche upto Rs 2 lakh (with 30 months repayment)

- The second Loan Tranche will be available to skilled beneficiaries who maintain a
standard loan account and have adopted digital transactions in their business or have
undergone Advanced Skill Training.

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 Credit Support (Contd…)

Concessional Interest and Subvention

1. Concessional rate of interest fixed at 5%.

2. The interest subvention by the Government of India will be upto 8%

3. Provided upfront to the banks.

4. Interest subvention for both first and second tranche of the loans.

5. A Credit Oversight Committee headed by the Secretary, DFS may revise the interest
subvention cap keeping in view the prevailing interest rates.

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 Credit Support (Contd…)
Credit Guarantee
1. Graded Guarantee Cover by the Credit Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE), on a portfolio basis
2. Portfolio will be created on an annual basis ending with the financial year
First Loan Second Loan
Portfolio Coverage Portfolio Coverage
First Loss 0 to 7.5% 100% 0 to 5% 100%
Second Loss Above 7.5% to 20% 80% Above 5% to 15% 80%
Third Loss Above 20% to 50% 60%
Maximum Guarantee 50% 15%
Cover
Effective Guarantee 35.5% 13%
Cover

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 Credit Support (Contd…)
Participating Financial Institutions
• Scheduled Commercial Banks

• Regional Rural Banks

• Small Finance Banks

• Cooperative Banks

• Non-Banking Finance Companies and Micro Finance Institutions

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 Credit Oversight Committee

• A Credit Oversight Committee in DFS shall monitor the flow and reach of credit support

proposed under the Scheme and review interest subvention cap from time to time.

• The Committee will be chaired by Secretary (DFS) with Secretary (MSME) as a member.

• The Committee will also have representatives of Secretary (Expenditure), RBI, SIDBI and

CGTMSE

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 Process Flow

Step 1: Beneficiary enrols

Step 2: Three-stage verification at Panchayat/ ULB, District and State level

Beneficiary details forwarded to MSDE

Beneficiary
receives PM
Vishwakarma
5 day Basic Skill Training Loan application for 1st Tranche SIDBI provides Beneficiary
Certificate and ID
including Skill Identification by of Loan @Rs 1 Lakh forwarded to credit score to receives 1st loan
Card
MSDE Bank Bank tranche of Rs 1 lakh

15 days or more Advanced Skill Beneficiary repays the 1st Loan Beneficiary is
Training and Certification Tranche actively using
digital transactions

Beneficiary receives 2nd Loan

Tranche of Rs 2 Lakh
 Expectation from Banks

• Conduct high visibility IEC activities in local radio, TV and social media; Hoardings, Public

Announcement (PA) & posters at key locations.

• Banks to sensitize branch officials about the salient features of the scheme.

• Banks to ensure expeditious disposal of loan applications received under the scheme.

• Banks should not reject applications on low credit score unless the borrower has defaulted.

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Thank You

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