PM Vishwakarma Yojana in Kerala: What Kannur's Boat Builders and Fishing Net Makers Should Know

The PM Vishwakarma Yojana is a Government of India scheme aimed at supporting traditional artisans, including boat builders and fishing net makers in Kerala. Eligible beneficiaries may access skill training, a toolkit incentive of up to Rs 15,000, and collateral‑free credit support up to Rs 3 lakh at concessional interest rates, subject to scheme guidelines, verification, and lender assessment.

Registration is carried out through authorised Common Service Centres (CSCs) using Aadhaar-based verification. Additional documentation and verification steps may apply depending on local implementation requirements.

What Is PM Vishwakarma and Why Kerala Artisans Should Pay Attention

The scheme launched on 17 September 2023 under the Ministry of MSME with a Rs 13,000 crore national outlay. It covers 18 traditional trades and is specifically aimed at artisans who use hands and tools in their work, as distinct from factory workers or mechanised production workers.

For Kannur, two trades are directly relevant: Boat Maker and Fishing Net Make, both explicitly named in the scheme's eligible trade list. Kannur has an established boat-building tradition along its coastal belt, with wooden vessel construction serving both the fishing fleet and the tourist houseboat market. Net making, while increasingly mechanised in larger operations, still has significant hand-craft output in smaller workshops along the coast.

Which Trades Are Eligible: The Full List with Kannur Relevance

Note: Full 18-trade list is on pmvishwakarma.gov.in. Artisans should verify their specific trade is listed before registering.

An important clarification for Kannur's informal artisan community: workers don't need GST registration, a business licence, or even a formal workshop address to apply. The scheme covers informal workers. A boat maker working from a thatched yard on rented beach land with no business registration is fully eligible.

Eligibility: The Five-Point Checklist

If an applicant has previously availed loans under specified government schemes within the defined period, eligibility may be affected as per scheme rules. Applicants may verify the latest criteria with CSCs or authorised officials.

The "no prior scheme loan in the past 5 years" condition trips up some applicants who previously took a MUDRA loan or PMEGP facility. If a family member took the loan but you didn't, you're still eligible as the one-per-household applicant. If you personally took one of these loans in the past 5 years, contact the CSC or nodal office to confirm current eligibility rules, these provisions can be revised.

1. Toolkit grant of Rs 15,000

Issued as an e-voucher after basic skill training. For Kannur boat builders, this covers hand tools: chisels, adzes, caulking irons, planes, and measuring instruments. For net makers, it covers hand frames, knotting tools, and repair equipment. 

1. Skill training with daily stipend

Basic training: 5 days. Advanced training: 15 days. Both are free. Rs 500 per day is credited to the bank account during training. Basic training alone pays Rs 2,500. Complete both and it's Rs 10,000 in direct income during training, not a trivial amount for a daily-wage artisan.

1. Collateral-free credit

Eligible beneficiaries may apply for credit support under the scheme:

• Tranche 1: up to Rs 1 lakh

• Tranche 2: up to Rs 2 lakh (subject to satisfactory repayment of the first tranche)

The interest rate is specified at 5% per annum under the scheme framework, supported through government interest subvention. Loan sanction, amount, tenure, and disbursal are subject to lender evaluation, eligibility criteria, and applicable terms.

Worked example: Rs 1 lakh loan at 5% per annum over 18 months

Note: All figures are illustrative. The government reimburses 8% of the interest rate to the lender; the artisan pays only the 5% balance. Market rates are indicative and may vary across lenders depending on borrower profile, loan tenure, and prevailing conditions.

Summary table:

When Rs 3 Lakh May Not Be Sufficient for Larger Requirements

The PM Vishwakarma scheme provides credit support up to Rs 3 lakh under defined conditions. For certain applications, such as boat construction or expansion of production capacity, total funding requirements may exceed this amount depending on material costs, scale of work, and project specifications.

In such cases, artisans may explore additional financing options offered by regulated lenders, including secured and unsecured credit products. These may include MSME business loans or collateral-backed loans, depending on eligibility and financial requirements.

Collateral-backed options such as gold loans

Collateral-backed credit, such as gold loans, involves pledging gold jewellery or ornaments as security to obtain funds. Under regulatory norms issued by the Reserve Bank of India, such loans are typically extended against evaluated gold value, subject to Loan-to-Value (LTV) limits, valuation processes, and lender-specific policies.

Loan amount, tenure, and pricing may vary depending on gold purity, prevailing market value, and lender assessment. Gold loans are generally used to meet short-term liquidity requirements and may involve simpler documentation compared to unsecured credit, although terms differ across institutions.

Regulated lenders, including NBFCs, offer gold loan products in compliance with applicable regulations. Borrowers may review product details, charges, and eligibility criteria before applying. For reference, information about gold loan offerings is available here:

Additional MSME funding options

For larger capital requirements, MSME business loans may also be considered. These loans are subject to credit evaluation, documentation, and repayment terms based on lender policies.

A PM Vishwakarma certificate and repayment track record, where applicable, may form part of the borrower’s financial profile, although loan approval remains subject to independent assessment by the lender.

Conclusion

The PM Vishwakarma Yojanain Kerala is a Government of India initiative designed to support traditional artisans engaged in recognised trades, including boat builders and fishing net makers in Kerala. The scheme provides structured support through skill development, access to modern tools, and credit facilities, with the objective of strengthening small-scale, self-employed artisans working with hands and traditional techniques.

Eligible beneficiaries may receive benefits such as skill training with a daily stipend, a toolkit incentive of up to Rs 15,000, and collateral‑free credit support of up to Rs 3 lakh in two tranches at concessional interest rates, subject to scheme guidelines, verification, and lender assessment. Registration is conducted through authorised Common Service Centres (CSCs) using Aadhaar-based authentication, along with local verification processes.

For coastal districts such as Kannur, where traditional boat building and fishing net making continue to play a role in the local economy, the scheme offers a formal pathway to access financial and technical support while remaining within the unorganised sector framework.

Disclaimer : The information in this blog is for general purposes only and may change without notice. It does not constitute legal, tax, or financial advice. Readers should seek professional guidance and make decisions at their own discretion. IIFL Finance is not liable for any reliance on this content. Read more