The department is operating a scheme for timely supply of quality raw materials at resonable cost to handloom weavers. This is being implemented through the six years banks existing in the state and yarn banks of Hantex and hanveev in order to meet their working capital purposes.
Beneficiaries
Yarn Banks
How to Apply
Through General Manager, District Industries Centre
Eligibility
The assistance is provided on input output linked process as loan component. The margin money loan is provided to 6 yarn banks approved by NHDC and Hantex and Hanveev on their performance of the previous years.
Criteria
- Yarn should be purchased from public sector/Co-operative Sector spinning Mills in the state
- The fund will be disbursed to yarn banks only after executing the agreement by the concerned yarn banks
- The terms and conditions for repayment of loan is as follows.
| Mode of repayment | Annual instalment |
| Repayment period | Ten years |
| Rate of interest | 2.75% |
| Penal interest | Nil |
| Date of commencement of repayment | The first instalment will be due on completion of the one year of withdrawal of loan. The subsequent instalments will be due on the same day of the succeeding years. |