PM Vishwakarma Scheme: Low Loan Approvals Slow Artisan Aid
Why in the news
The artisan scheme is struggling as public sector banks cleared few loans.
Key facts
| Loan applications | Number |
|---|---|
| Received | 1.39 million |
| Approved | 390,000 (about 28%) |
| Rejected | 777,000 |
- Launched September 2023 (PM Modi’s birthday); duration FY2023-24 to FY2027-28; outlay ₹13,000 crore.
- Targets artisans like blacksmiths, potters and carpenters.
Concerns
- Rejections: mismatched purpose, missing documents, past NPAs, weak creditworthiness.
- Bottlenecks: non-standard paperwork, bank reluctance, uneven branch processing, low digital literacy.
Proposed reforms
- Review rejections above branch level.
- Interest subvention deadline: 6th to 10th of each month.
- Better tracking, a ‘withdrawn’ tag, and re-engagement with applicants.
Exam angle
- Outlay: ₹13,000 crore; start: September 2023.