The Centre is set to launch the second phase of PM Vishwakarma scheme on September 17, coinciding with Vishwakarma Jayanti and Prime Minister Narendra Modi's birthday. According to reports from Business Standard, a government official confirmed that the Prime Minister is likely to make an announcement about the enhanced credit access during his Independence Day speech on Saturday. The government has invited 100 PM Vishwakarma beneficiaries as special guests to witness the 80th Independence Day ceremony at the Red Fort.
Under the existing scheme, 30 million applicants have successfully registered after completing a three-stage verification process, while more than 600,000 collateral-free loans worth ₹5,259 crore have been disbursed. As reported by Business Standard, the gap between registrations and credit uptake has emerged as a key implementation challenge. The scheme's National Steering Committee approved measures at its October 10, 2025 meeting to improve loan sanctions and disbursements, including offering smaller loans of ₹50,000 to ₹1 lakh to reduce EMI burden.
The second edition of the scheme will provide holistic, end-to-end support through access to collateral-free credit, skill training, modern tools, incentives for digital transactions and market-linkage support. According to the government official, the scheme will offer expanded loan amounts compared to the current structure. Under the existing scheme, the government provides up to ₹1 lakh at a concessional interest rate of 5 per cent for the first tranche, with a 18-month repayment period. After full repayment, beneficiaries are eligible for a second tranche of up to ₹2 lakh with a 30-month repayment period.
To address implementation challenges, banks were directed to review cases rejected due to inability to contact beneficiaries, while beneficiaries who declined loans were required to provide written undertakings. As reported by Business Standard, the MSME ministry coordinated with the Department of Financial Services to step up outreach through SMS messages in 12 regional languages and calls from MSME and bank call centres. Currently, beneficiaries should not have availed loans under similar credit-based schemes of central or state governments in the past five years.
Modi announced the scheme in his Independence Day speech in 2023, targeting individuals skilled in traditional craftsmanship, particularly from the OBC community. According to Business Standard, Modi had stated that the scheme would benefit carpenters, goldsmiths, masons, laundry workers, barbers and their families, beginning with an allocation of around ₹13,000-15,000 crore. The scheme aims to empower traditional artisans through comprehensive support including skill development, financial assistance, and market connectivity.
