The scheme aims to provide adequate and timely assistance from the banks to the handloom sector to meet their credit requirements for term loan & working capital in a flexible and cost-effective manner across the country.

Beneficiaries

  1. Individual Handloom Weavers/Weaver Entrepreneurs.
  2. Self Help Groups
  3. Joint Liability Groups
  4. Handloom organizations, including Primary Handloom Weavers Co-operative Societies. Apex Handloom Weavers’ Co-operative Societies, State Handloom Corporations and
  5. Special Purpose Vehicle (SPV)/consortia promoted by handloom weavers in Mega Cluster/Handloom Parks etc.
  6. Handloom Producer Companies

 

How to Apply

Eligible beneficiaries are required to approach participating Bank concerned for availing the MUDRA loan, for which application is to be filled in by the applicant and submitted in the bank with one of the following documents:

  • Pehchan card issued by the O/o DC(Handlooms)
  • yarn passbook
  • Identity card issued by the State Government.
  • Handloom Organization Registration Certificate, Balance Sheet, Profit & Loss Account, name of the weavers registered with Organization etc.
  • Loan sanction letter will be issued by the bank to the applicant within one (1) month of the application date.

Eligibility

  • Individual handloom weaver who have availed loan upto issuance date of guidelines will be eligible for getting benefits of interest subsidy and credit guarantee fee upto 3 years from the date of first disbursal of loan amount. These benefits will be discontinued thereafter for sanctioning fresh loan to individual weavers.
  • Individual weaver who have already availed margin money assistance will not be eligible for financial assistance in terms of margin money assistance, interest subvention and credit guarantee fee under the strength of Handloom Organization, SHGs etc.
  • Handloom organization is required to approach the participating banks along with required documents etc. for availing loan benefits under the scheme.

Margin Money Assistance

  1. Individual Handloom Weaver/Weaver Entrepreneur Margin Money assistance @20% of loan amount, subject to maximum of Rs.25,000/-.
  2. Handloom organization Margin money assistance @20% of loan amount, subject to maximum of Rs.20.00 lakh (margin money @Rs.2.00 lakh for every 100 weaver/worker).
  3. Margin Money assistance to Primary Handloom Weavers’ Co operativesocieties/state handloom corporations

Interest subvention – subsidized loans at concessional interest rate of 6% for a period of three years will be available to eligible handloom organisations only

E.3.3 Credit Guarantee

  1. The loans extended to the eligible handloom organizations will be guaranteed by the National Credit Guarantee Trustee Company (NCGTC)/Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE), as per decision of the Bank/Financial Institution concerned. Guarantee cover will be effective from the date of disbursement of loan for 3 years..
  2. If loan amount sanctioned is Rs.1.00 crore, handloom organization is eligible for getting maximum margin money assistance of Rs.20.00 lakh (margin money @Rs.2.00 lakh for every handloom weaver/worker). Therefore, credit guarantee would be covered on the loan amount disbursed upto Rs. 1.00 Crore.
  3. The credit guarantee fee on loan amount disbursed would be borne by Gol for a period of 3 years.