PM Vishwakarma Loan: Eligibility, Benefits and How to Apply
Reviewed by: WeCredit Research Team
PM Vishwakarma gives artisans in 18 traditional trades a collateral-free loan of up to Rs. 3 lakh in two tranches at a concessional 5% interest rate, along with skill training and a toolkit incentive of up to Rs. 15,000. You register through a Common Service Centre (CSC) using Aadhaar biometrics, and the loan itself comes from a bank after your registration is verified.
Quick answer: if you work with your hands and tools in one of the 18 listed trades, are 18 or older, are not in government service and have not taken a similar credit-scheme loan in the last 5 years, you can register for PM Vishwakarma. WeCredit does not sanction government scheme loans. Confirm current details on the official PM Vishwakarma portal before you apply.
PM Vishwakarma at a Glance
| Item | What the official sources say |
|---|---|
| Who it is for | Artisans and craftspeople in 18 family-based traditional trades, working in the unorganised sector or self-employed |
| Loan amount | Up to Rs. 3 lakh in two tranches: Rs. 1 lakh first, then Rs. 2 lakh |
| Repayment period | 18 months for the first tranche, 30 months for the second |
| Interest rate | 5% fixed for the borrower, with a Government of India subvention of up to 8% |
| Collateral | None. The loan is collateral-free |
| Toolkit incentive | Up to Rs. 15,000 as an e-voucher |
| Training stipend | Rs. 500 a day during basic (5 to 7 days) and advanced (15 days or more) training |
| Digital transaction incentive | Re. 1 per digital transaction, up to 100 transactions a month |
| Scheme period and outlay | FY 2023-24 to FY 2027-28, Rs. 13,000 crore |
| Status | Active. Launched on 17 September 2023 |
Which Trades Are Covered
The scheme covers these 18 trades: carpenter (Suthar/Badhai), boat maker, armourer, blacksmith (Lohar), hammer and tool kit maker, locksmith, goldsmith (Sonar), potter (Kumhaar), sculptor, stone carver and stone breaker, cobbler or footwear artisan, mason (Rajmistri), basket, mat and broom maker or coir weaver, traditional doll and toy maker, barber (Naai), garland maker (Malakaar), washerman (Dhobi), tailor (Darzi) and fishing net maker. If your trade is not on this list, the scheme does not apply to you, and the alternatives below may fit better.
Who Is Eligible
- You work with your hands and tools in one of the 18 family-based traditional trades, on a self-employment basis or in the unorganised sector.
- You are at least 18 years old on the date of registration and actively engaged in the trade.
- You have not taken a loan under a similar credit-based scheme in the past 5 years. The official release names PMEGP, MUDRA and PM SVANidhi as examples.
- Only one member of a family can benefit. Family here means husband, wife and unmarried children.
- You and your family members must not be in government service.
Is This Scheme Right for You? A Quick Checklist
| Question | If yes | If no |
|---|---|---|
| Is your trade one of the 18 listed? | Continue | Look at Mudra loans or other options |
| Are you 18 or older? | Continue | You cannot register yet |
| Has anyone else in your family (spouse or unmarried children) already registered? | Only one of you can benefit | Continue |
| Have you or your family members held a government job? | You are not eligible | Continue |
| Have you taken a PMEGP, MUDRA or PM SVANidhi-type loan in the last 5 years? | You are not eligible for now | You can register |
How the Loan Works: Two Tranches
The loan is an enterprise development loan paid out in two steps. The first tranche of Rs. 1 lakh is given after you complete basic training and repaid over 18 months. The second tranche of Rs. 2 lakh is repaid over 30 months. To get the second tranche you must have taken the first tranche, kept the loan account standard and either adopted digital transactions in your business or completed advanced training.
Worked example: what the instalments could look like
The table below is an illustration only. It assumes 5% a year charged on the reducing balance and equal monthly instalments. Your bank sets the actual repayment schedule and may structure it differently, so treat these as ballpark figures.
| Tranche | Amount | Tenure | Approx. monthly instalment | Approx. total interest |
|---|---|---|---|---|
| First | Rs. 1,00,000 | 18 months | Rs. 5,778 | Rs. 4,005 |
| Second | Rs. 2,00,000 | 30 months | Rs. 7,106 | Rs. 13,176 |
If you repay the first tranche on time and keep the account standard, you become eligible for the second. A missed instalment can block that step, so plan the monthly amount against your average earnings before you accept the loan.
Documents You Need
The scheme is built around Aadhaar. Registration is done by a CSC agent using Aadhaar authentication with biometrics, so the person registering must be present. Keep these ready:
- Your Aadhaar, with the registered details matching your current name and address, because biometric authentication is used.
- Details of the trade you practise, so the CSC agent can pick the correct one of the 18 trades.
- A bank account in your name for the loan. The bank may ask for its own KYC at the loan stage.
- Any additional papers the sanctioning bank or CSC asks for. These differ by lender and state, so ask before you visit.
How to Apply: Step by Step
- Check the trade list and the eligibility rules above. Note the portal name: pmvishwakarma.gov.in.
- Visit a nearby Common Service Centre. A CSC agent registers you on the PM Vishwakarma portal using Aadhaar biometric authentication.
- Your application goes through three levels of verification: the Gram Panchayat or Urban Local Body, then the District Implementation Committee, then the Screening Committee.
- After approval you receive the PM Vishwakarma certificate and ID card, and you are enrolled for basic skill training with a Rs. 500 daily stipend.
- You can claim the toolkit incentive of up to Rs. 15,000 as an e-voucher.
- You apply for the first-tranche loan of Rs. 1 lakh through a bank. The bank sanctions and disburses it.
- Repay on time, adopt digital transactions or complete advanced training, and then apply for the second tranche of Rs. 2 lakh.
Registration through the CSC is the entry point. If you are comparing portals, our JanSamarth portal guide explains a different government route for credit-linked schemes.
Typical Timeline: From Registration to Second Tranche
| Stage | What happens |
|---|---|
| 1. Registration | CSC agent registers you with Aadhaar biometrics |
| 2. Verification | Gram Panchayat or ULB, District Implementation Committee, Screening Committee |
| 3. Recognition | PM Vishwakarma certificate and ID card |
| 4. Training | Basic training of 5 to 7 days, Rs. 500 a day |
| 5. Toolkit | E-voucher of up to Rs. 15,000 |
| 6. First loan | Rs. 1 lakh, 18 months |
| 7. Second loan | Rs. 2 lakh, 30 months, after the conditions are met |
Status, Rejection Reasons and Fixes
Your application moves through the three verification levels before the loan stage, so a delay at one level holds everything behind it. Ask the CSC that registered you for your application details, and follow up with the Gram Panchayat or ULB office if verification is stuck. The official sources do not publish a rejection list, but the eligibility rules show where applications most often fail:
| Likely reason | What to check or do |
|---|---|
| Trade not among the 18 | Compare your work with the trade list. Choose another scheme if it does not match |
| Another family member already registered | Only one member (spouse or unmarried child) can benefit, so decide who registers |
| Earlier loan under a similar credit scheme | The 5-year gap applies. Check your loan history before applying |
| Government service in the family | The scheme excludes the person or family members in government service |
| Aadhaar authentication fails | Update your Aadhaar details or fingerprints and retry at the CSC |
| Bank-stage concerns | The sanctioning bank may run its own checks. See why business loans get rejected |
PM Vishwakarma vs Mudra vs PM SVANidhi
| PM Vishwakarma | Mudra | PM SVANidhi | |
|---|---|---|---|
| Who it targets | Artisans in 18 traditional trades | Small non-farm businesses | Street vendors |
| Training and toolkit | Yes, stipend and toolkit incentive | No | No |
| Interest to borrower | 5% fixed | Set by the lender | See the dedicated guide |
| Can you hold it with the others? | A loan under Mudra or PM SVANidhi in the last 5 years makes you ineligible | Taking Mudra first can block PM Vishwakarma for 5 years | Taking it first can block PM Vishwakarma for 5 years |
The rows on Mudra and PM SVANidhi are general descriptions, so check each scheme’s official page for its current terms. Because earlier loans can block you for 5 years, pick the scheme that fits your trade before borrowing. Read our Mudra loan guide and PM SVANidhi guide for those schemes, and the CGTMSE explainer if you later need a larger collateral-free business loan.
Common Mistakes
- Paying an agent to register you. Registration is done at a CSC using your Aadhaar, so check the portal and ask what any fee is for.
- Registering two members of the same family and assuming both will benefit.
- Taking a Mudra or similar loan just before applying and then finding the 5-year rule blocks you.
- Skipping training. Basic training comes before the first loan, and the second tranche needs advanced training or digital transaction use.
- Assuming the 5% rate is optional or negotiable. The scheme sets the borrower rate, so confirm it on your sanction letter.
- Using lookalike websites. The official portal is pmvishwakarma.gov.in. For more on government loan options, see our government business loan guide.
Frequently Asked Questions
How much loan can I get under PM Vishwakarma?
Up to Rs. 3 lakh in two tranches: Rs. 1 lakh first and Rs. 2 lakh second. The loan is collateral-free.
What is the interest rate?
5% fixed for the borrower, with a Government of India subvention of up to 8%. The bank must still confirm the rate and schedule in your sanction letter.
Is PM Vishwakarma still active?
Yes. The scheme runs from FY 2023-24 to FY 2027-28 with an outlay of Rs. 13,000 crore. A Press Information Bureau note of 16 September 2026 reports that the registration target of 30 lakh beneficiaries has been met and that over 6.19 lakh loans have been sanctioned.
Can I apply online by myself?
Registration is done by a Common Service Centre agent using Aadhaar biometric authentication. Start at the CSC and use the official portal to follow the scheme.
Can two people in the same family apply?
No. Only one member of a family, meaning husband, wife and unmarried children, can benefit.
Do I get anything besides the loan?
Yes. You get a PM Vishwakarma certificate and ID card, skill training with a Rs. 500 daily stipend, a toolkit incentive of up to Rs. 15,000 and Re. 1 per digital transaction for up to 100 transactions a month.
Does WeCredit sanction PM Vishwakarma loans?
No. WeCredit does not sanction government scheme loans. We compare loan options and explain how schemes work. Confirm current terms with your bank and on the official source. See also our MSME online apply guide and the government loan schemes hub.
Official Sources
- PM Vishwakarma official portal
- PIB: PM Vishwakarma, Strengthening Traditional Artisans and Craftspeople (16 September 2026)
- PIB: Salient features and guidelines of PM Vishwakarma
- PIB: Union Cabinet approval of PM Vishwakarma
- PIB: Rs. 13,000 crore for PM Vishwakarma, eligibility details
- PIB: PM Vishwakarma Scheme, Honouring Heritage, Powering Progress
