What changed
The Government of India launched the PM Vishwakarma Scheme to support artisans and craftspeople with credit at concessional rates, backed by interest subvention. RBI has directed all eligible lending institutions to refer to the scheme guidelines issued by the Ministry of MSME for implementation.
What it means for you
Banks and NBFCs can now offer cheaper loans to artisans, with the government covering part of the interest cost. This expands the priority sector lending base and requires lenders to align their processes with MSME ministry guidelines.
What you must do
- Review the PM Vishwakarma Scheme guidelines from the Ministry of MSME for detailed operational instructions.
- Train frontline staff on eligibility criteria and concessional interest rate structures for artisan loans.
- Update internal lending policies to include interest subvention claims and reporting mechanisms.
- Ensure systems are ready to track and disburse credit under the scheme to eligible beneficiaries.
Who it affects
All Scheduled Commercial Banks (including Small Finance Banks and RRBs, excluding Payments Banks), Primary (Urban) Co-operative Banks, State Co-operative Banks and District Central Co-operative Banks, All Non-Banking Financial Companies (excluding housing finance companies)
What is the PM Vishwakarma Scheme?
It is a Government of India scheme to support artisans and craftspeople with concessional credit and interest subvention, helping them move up the value chain.
Which institutions are eligible to lend under this scheme?
All Scheduled Commercial Banks (excluding Payments Banks), Primary Urban Co-operative Banks, State/District Central Co-operative Banks, and NBFCs (excluding HFCs) are eligible.
Where can I find detailed guidelines for implementation?
The scheme guidelines are issued by the Ministry of Micro, Small and Medium Enterprises. Lenders should refer to those for specific operational details.