Govt to give 8% interest subsidy on loans in Vishwakarma scheme: Sitharaman

New Delhi, Sep 17 (IANS) Finance Minister Nirmala Sitharaman on Sunday said that the Centre will give up to 8 per cent subsidy for loans given to artisans under the Vishwakarma Yojana launched by Prime Minister Narendra Modi.

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 scheme.

The Finance Minister said that collateral-free loans would be given to artisans at an affordable interest rate of 5 per cent.

The scheme covers 18 activities including carpenter, goldsmith, blacksmith, mason, stone sculpture, barber and boat makers among others.

The government, she said, will provide up to Rs 3 lakh loan.

Initially, she said, loan up to Rs 1 lakh 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 technology, 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, informing that beneficiaries will be identified through a three-layer approach.

Apart from this, a Rs 15,000 grant will be given as a toolkit incentive and an incentive for digital transactions of Rs 1 per transaction for up to 100 transactions monthly, too will be given.