PM LAUNCHES RS 13K CRORE 'PM VISHWAKARMA' SCHEME

The scheme offers collateral-free enterprise development loans at a concessional interest rate in 2 tranches of Rs 1 lakh and Rs 2 lakh, respectively

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On Sunday, Prime Minister Narendra Modi inaugurated the 'PM Vishwakarma' scheme on the occasion of Vishwakarma Jayanti. This initiative aims to offer loan assistance at a minimal interest rate to traditional craftsmen and artisans without requiring any collateral.

With a financial outlay of Rs 13,000 crore for a period of five years, the scheme will benefit about 30 lakh families of traditional artisans and craftsmen, including weavers, goldsmiths, blacksmiths, laundry workers, and barbers.

The goal of the scheme is to enhance the accessibility and quality of products and services offered by traditional artisans and craftsmen.

The scheme offers collateral-free enterprise development loans of Rs 1 lakh (first tranche for 18 months repayment) and Rs 2 lakh (second tranche for 30 months repayment).

A concessional rate of interest of 5 per cent will be charged from the beneficiary with interest subvention cap of 8 per cent to be paid by the Ministry of Micro Small and Medium Enterprises. The credit guarantee fees will be borne by the central government.