As per Union Budget documents, the Budget Estimate for PM Vishwakarma in FY27 has been reduced to ₹3,861 crore, marking a sharp cut from the ₹5,100 crore provided in FY26. The decline becomes more pronounced when compared with the Revised Estimate of ₹4,400 crore for FY26, indicating a year-on-year contraction in allocations despite the scheme being in its early expansion phase.
Launched in September 2023, the PM Vishwakarma scheme is designed to provide holistic support to traditional artisans and craftspeople, including collateral-free credit, skill training, toolkits and market access.
“The lower allocation for the Vishwakarma Scheme reflects phased implementation and the shift of credit support to banking and guarantee mechanisms rather than any dilution of intent. However, traditional artisans need more than credit alone; sustained investment in skills, tools, market access and branding is essential for durable livelihood outcomes. As on-ground execution gathers momentum, future budgets must reinforce the scheme to fully realise its potential in formalising and strengthening India’s artisan economy,” said Vinod Kumar, president of the India SME Forum.
As of early November 2025, public-sector banks had received over 125,000 applications, of which close to 98 per cent applications were processed. However, the conversion of processed applications into sanctions has remained moderate, with only about 435,000 cases, or 36 per cent, receiving approval. Actual disbursements stood at around 371,000, translating into an 85 per cent disbursement rate of sanctioned loans, according to government sources.
Among individual banks, State Bank of India emerged as the largest contributor in absolute terms, having received more than 530,000 applications. The bank sanctioned around 164,000 cases and disbursed loans to over 145,000 beneficiaries. Punjab National Bank and Canara Bank also reported significant volumes, with both banks processing nearly all applications that they received, and maintained high disbursement ratios once loans were sanctioned, according to government sources.
Despite the strong processing performance, bankers pointed out that eligibility checks, documentation issues and credit appraisal norms constrained sanction rates, particularly for first-time borrowers and informal artisans who lacked prior banking histories.
Regional rural banks, which play a critical role in rural and semi-urban outreach, showed a more subdued trend. From the launch of the scheme till December 2025, the regional rural banks received about 192,000 applications, but only around 27 per cent of processed cases were sanctioned.
“Almost all applications that were received had been processed, reflecting operational efficiency. The fall in sanction rates has raised concerns around credit absorption, appraisal capacity and borrower readiness in rural markets,” said a senior bank official.
 "artisans")