Vishwakarma scheme faces challenges with loan approval rate at just 28%

While a total of 13.93 lakh loan applications were submitted to PSBs, only 3.9 lakh were approved, highlighting a significant gap in the disbursement process

The PM Vishwakarma scheme, designed to provide financial support and skill development for artisans in India’s informal sector, is struggling with a low loan approval rate from public sector banks (PSBs). According to senior government officials familiar with the data, only 28 per cent of applications have been cleared. 

Launched on Prime Minister Narendra Modi’s birthday in 2023, the scheme targets workers in trades such as blacksmithing, goldsmithing, pottery, carpentry, and sculpting. It was allocated ₹13,000 crore from 2023–24 to 2027–28. Of the 1.39 million loan applications submitted to PSBs, just 390,000 were approved — highlighting a wide gap in