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IND – PM Vishwakarma

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Particulars

Guidelines

Name of the Product

Target Group

Traditional artisan or craftsperson working with their hands and tools and engaged in one of the traditional trades as specified in Annexure in the unorganized sector on self-employment basis, with valid PM Vishwakarma Certificate & PM Vishwakarma ID card shall be eligible under this scheme.

Purpose

To improve the quality, as well as the reach of products and services of artisans and craftspeople and to ensure that the Vishwakarmas are integrated with the domestic and global value chain.

Age of the Applicant

Minimum age of the beneficiary should be 18 years or above.

Eligibility

· Applicant should be engaged in the specified trades on the date of registration and should not have availed loans under similar credit-based schemes of Central Government or State Government for self-employment/ business development. e.g. PMEGP, PMSVANidhi, Mudra in the past 5 years.

· However, the beneficiaries of MUDRA and PMSVANidhi who have repaid their loan, will be eligible under PM Vishwakarma. This period of 5 years will be calculated from the date of sanction of the loan.

· Benefits under the scheme shall be restricted to one member of the family. [Under this scheme, a ‘family’ is defined as consisting of the husband, wife and unmarried children]

· Persons in government service and their family members shall not be eligible under the Scheme.

Credit Support

Enterprise Development Loans will be sanctioned to the beneficiaries upon receiving applications on PM Vishwakarma Portal. The total quantum of loan assistance is up to Rs. 3,00,000/-

Tranche -1 Loan: Credit support of upto Rs 1 lakh. (with 18 months’ repayment)

· To be eligible for availing the Tranche-1 loan, Applicant should have completed 5 days Basic Skill Training provided by Ministry of Skill Development and Entrepreneurship (MSDE) under PM Vishwakarma.

Tranche -2 Loan: Credit Support up to Rs 2,00,000/- (with 30 months repayment)

· The second loan tranche will be available to applicants who have fully repaid their first loan tranche as a standard loan account and have adopted digital transactions in their business or Undergone Advanced Skill Training.

· Loan under Second Tranche should not be granted before six months of the disbursement of First Tranche loan.

Types of Facility

Composite Loan.

Loan Amount

· First Tranche : Upto – Rs. 1.00 Lakh

· Second Tranche: Upto – Rs. 2.00 Lakhs

Margin

Nil

Rate of Interest

13.00% (Fixed), Presently

· Sanction Ticket & Documentation to be obtained with 13.00% ROI.

· In case of accounts under Standard Category, Customer account will be debited at 5% and balance 8% will be received as Interest Subvention from GOI.

· In case of NPA accounts, Customer account will be debited for 13% , Since Interest Subvention will not be provided for NPA accounts.

Interest Subvention

· Borrowers under this scheme are eligible for interest subvention upto an extent of 8% which will be provided upfront to the banks.

· Subvention will only be provided in respect of those accounts of borrowers which are standard (Non NPA) on respective claim date and only for those months during which the account has remained standard are eligible for reimbursement.

· Both First and Second Tranche loans are eligible for Interest Subvention.

Security

· Charge on assets created out of bank finance (Primary) for the sanctioned limit.

· No collateral to be obtained for loans sanctioned under PM Vishwakarma Scheme.

Guarantee Cover

To be covered under CGTMSE on Portfolio Basis-. The Portfoilo will be created on annual basis ending with the financial year.

Particulars	First Tranche		Second Tranche
Particulars	Portfolio	Cover	Portfolio	Cover
First Loss	0 to 7.5%	100%	0 to 5%	100%
Second Loss	Above 7.5% to 20%	80%	Above 5% to 15%	80%
Third Loss	Above 20% to 50%	60%
Maximum Guarantee Cover	50%		15%
Effective Guarantee Cover	35.5%		13%

Guarantees will be issued based on the sanction and disbursement data uploaded on the Vishwakarma portal.

Guarantee Fee

Nil

Guarantee& Claim Procedure

· CGTMSE will capture the sanction and disbursement data uploaded by Banks on the Vishwakarma portal and issue the guarantees.

· The claims against the guarantee shall be lodged on CGTMSE portal. Periodicity for filing the claims shall be Quarterly.

Repayment Period & Moratorium

First Tranche: 18 Months

Second Tranche: 30 Months

No Holiday Period.

Processing & Other Charges

Nil

Pre-payment Charges

Nil

Sanctioning Authority

Branch Manager

Administrative approval to be obtained from Zonal Office for sanction of loans above Rs. 1.00 Lakh under this product.

Documentation

· Acceptance of Sanction

· Demand Promissory Note

· Agreement for Hypothecation of Movables.

Others

· Loan applications should be routed through PM Vishwakarma Portal.

· Internal Scoring Model to be carried out and minimum scoring of BBB to be ensured.

· Credit Information Score (CIBIL/Experian/ CRIF/Equifax) of the applicant to be extracted, No minimum score is stipulated for this product. However, applicants with NPA / written off not to be considered.

· Applicants without any credit history are also permitted under the scheme.

· An amount of Re. 1 per eligible digital transaction (upto a maximum of 100 eligible transaction) monthly will be credited to the beneficiary’s bank account in DBT mode through Aadhaar Payment Bridge System (APBS). Eligible transaction means a digital pay-out or receipt in the bank account of the beneficiary.

· Any modification/ clarification issued by GOI from time to time will form part of the scheme.

· All other bank guidelines issued from time to time are to be complied with.

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( Last modified on Nov 08, 2024 at 03:11:41 PM )