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Schemes In News: PM Vishwakarma Yojana, PM Vidyalaxmi

PM VISHWAKARMA YOJANA

It is a Central Sector Scheme launched by the Union Ministry of Micro, Small, and Medium Enterprises in September 2023 to empower people working in the informal or unorganized sector.

It is fully funded by the Union Government with a financial support of Rs 13,000 crore for FY 2023-24 to FY 2027- 28.

The artisans and craftspeople to be awarded with a PM Vishwakarma Certificate and an ID Card.

The main objective is to cultivate and strengthen the Guru-Shishya parampara (mentor-student tradition) of traditional skills and also improve the quality and reach of artisans' products.

Who are the beneficiaries and how can they apply?

The scheme benefits artisans and craftspeople working in traditional occupations such as blacksmithing, goldsmithing, pottery, carpentry, and sculpting. These artisans are known as Vishwakarmas.

It targets both rural and urban artisans, with coverage extended to 25 traditional crafts such as Boat Maker, Armourer, Blacksmith, and Hammer and Tool Kit Maker.

Artisans can apply for the scheme by registering for free through the Common Services Centres (CSCs) via the biometric-based PM Vishwakarma portal.

Since its launch, the scheme has created a strong response, with 25.8 million applications submitted. 2.37 million applicants were successful.

What are the key benefits of the PM Vishwakarma Yojana?

It provides collateral-free credit support of Rs 1 lakh for the first tranche and Rs 2 lakh for the second, with a 5% concessional interest rate. 

The government provides an 8% initial interest subsidy on loans.

It will benefit 5 lakh families in its first year, with a total of 30 lakh families expected to benefit over the next five years.

It provides toolkit incentives of up to Rs 15,000 via e-vouchers to nearly 1 million registered artisans to acquire modern tools and improve their craftsmanship.

PM VIDYALAXMI

It is a Central Sector Scheme approved by the Union Cabinet that provides financial assistance to deserving students pursuing higher education.

It will supplement the Central Sector Interest Subsidy (CSIS) and Credit Guarantee Fund Scheme for Education Loans (CGFSEL) currently being implemented by the Department of Higher Education.

A budget of Rs 3,600 crore has been set for 2024-25 to 2030-31. During this time, 7 lakh new students are expected to benefit from the interest subvention.

Who are eligible?

Students who get admission to any of the top 860 Quality Higher Education Institutions (QHEIs), both public and private are eligible. These institutions are identified using the National Institutional Ranking Framework (NIRF).

What benefits it offers to students?

It provides collateral-free and guarantor-free loans to cover tuition and other course-related expenses. Students can get loans of up to ₹7.5 lakh with 75% credit guarantee.

During the moratorium period, students with an annual family income of up to Rs 8 lakh who are not eligible for other government scholarships or interest-subvention schemes can receive a 3% interest subsidy on loans up to ₹10 lakh. 

The benefit will be provided to one lakh students each year, with preference given to students from government institutions who have opted for technical and professional courses.

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Source: 

PIB

The Hindu

PRACTICE QUESTION Q.Consider the following statements in the context of the provisions of the PM-Vidyalaxmi Scheme: 1. Students who get admission in Quality Higher Education Institutions (QHEIs) are eligible for a collateral-free and guarantor-free education loan. 2. The interest subvention support will be given to 10 lakh students every year. Which of the above statements is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Answer: A Explanation: Statement 1 is correct: The Union Cabinet approved the PM-Vidyalaxmi scheme, which allows students admitted to Quality Higher Education Institutions (QHEIs) to apply for an education loan without providing collateral or a guarantor. Statement 2 is incorrect: Under the scheme, every year, one lakh students will receive interest subvention support. Preference will be given to students from government institutions who have chosen technical and professional courses.