Govt to provide up to 8% interest subsidy for Vishwakarma Yojana: FM

Finance Minister Nirmala Sitharaman said the government will offer up to 8 per cent subsidy for loans given to artisans under the Vishwakarma Yojana launched by Prime Minister Narendra Modi on Sunday.

The government has already made a provision of Rs 13,000 crore in the Budget 2023-24, she said during the launch event of the Yojana.

Sharing the details of Vishwakarma Yojana, the finance minister said collateral-free loans to artisans would be provided at a very affordable interest rate of 5 per cent.

The scheme covers 18 activities including carpenter, goldsmith, blacksmith, mason, stone sculpture, barber and boatmakers, she said, adding, the government will provide up to Rs 3 lakh loan.

Initially, she said, Rs 1 lakh loan will be given and the beneficiary would be eligible for an additional Rs 2 lakh after repayment schedule of 18 months.

The components of the scheme will include not only financial support but also access to advanced skill training, knowledge of modern digital techniques and efficient green technologies, brand promotion, linkage with local and global markets, digital payments, and social security.

Each beneficiary would get skill training of 5 days with a daily stipend of Rs 500, she said, adding identification of each beneficiary would be done through a three-layer approach.

Besides, a Rs 15,000 grant will be provided as a toolkit incentive and an incentive for digital transactions of Rs 1 per transaction for up to 100 transactions monthly.

This will greatly benefit the Scheduled Castes, Scheduled Tribes, OBCs, women and people belonging to the weaker sections.