What you get
Margin Money Assistance: | - Individual Handloom Weaver/Weaver Entrepreneur- Margin Money assistance @20% of the loan amount, subject to a maximum of ₹25,000/-. | - Handloom organization - Margin money assistance @20% of the loan amount, subject to a maximum of ₹20.00 lakh (margin money @₹2.00 lakhs for every 100 weaver/worker). Additional margin money requirement, if any as per banking norms will be borne by the beneficiary Agency. | - Margin money assistance to Primary Handloom Weavers’ Co-operative Societies/Apex Handloom Weavers’ Co-operative Societies/State Handloom Corporations will be provided on the recommendation of the State Director of Handlooms. | Interest Subvention: | - Subsidized loans at a concessional interest rate of 6% for a period of three years will be available to eligible handloom organizations only. However, this is subject to interest subvention cap only upto 7% by the GoI. | - Interest subvention as applicable will be provided a maximum of 3 years from the date of the first disbursal. | Credit Guarantee: | - 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 the decision of the Bank/Financial Institution concerned. Guarantee cover will be effective from the date of disbursement of the loan for 3 years. | - If the loan amount sanctioned is ₹1.00 crore, the handloom organization is eligible for getting maximum margin money assistance of ₹20.00 lakhs (margin money @₹2.00 lakhs for every handloom weaver/worker). Therefore, a credit guarantee would be covered on the loan amount disbursed upto ₹1.00 Crore. | - The credit guarantee fee on the loan amount disbursed would be borne by GoI for a period of 3 years. | Note 01: Under the scheme, the loans will be provided to all eligible handloom beneficiaries for 3 years. | Note 02: Individual handloom weavers who have availed loans upto the 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 the loan amount. These benefits will be discontinued thereafter for sanctioning fresh loans to individual weavers. | Note 03: Loans extended by banks up to ₹10.00 lakhs will be covered under MUDRA and loans above ₹10.00 lakhs will be covered under Concessional Credit. | Note 04: Margin money assistance to Handloom Organization will be provided on a pro-rata basis. The lower side of margin money assistance i.e. @₹2.00 lakhs for every 100 weavers/workers or @20% of the loan amount sanctioned subject to a maximum of ₹20.00 lakhs, whichever is less will be considered. | Note 05: Margin money assistance will be transferred directly to the loan account of Handloom Organization while interest subsidy and credit guarantee fee will be transferred to the concerned bank.
Who can apply
Required Paperwork
- Aadhaar Card
- PAN Card
- Income Certificate
- Residence Proof (Domicile)
Common Questions
What is the ‘Concessional Credit/Weaver MUDRA Scheme’?
The 'Concessional Credit/Weaver MUDRA Scheme' is a component of the National Handloom Development Programme (NHDP) launched by the Ministry of Textiles, Government of India to make available the credit to handloom weavers at concessional interest rates.
What is the aim of the Scheme?
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.
Which banks are eligible to participate in the ‘Concessional Credit/Weaver MUDRA Scheme’?
All Scheduled Commercial Banks, Regional Rural Banks, State Cooperative Banks, District Central Co-operative Banks and any financial institution with the approval of Competent Authority of Ministry of Textiles, GoI.
What are the key benefits of the scheme?
The Concessional Credit/Weaver MUDRA Scheme offers various benefits, including Margin Money Assistance, Interest Subvention, and Credit Guarantee.
What is the rate of Margin Money Assistance for Individual Handloom Weaver/Weaver Entrepreneur?
Individual Handloom Weaver/Weaver Entrepreneur - Margin Money assistance @20% of loan amount, subject to maximum of [?]25,000/-.
What is the rate of Margin Money Assistance for Handloom organization?
Handloom organization - Margin money assistance @20% of loan amount, subject to maximum of [?]20.00 lakh (margin money @[?]2.00 lakhs for every 100 weaver/worker). Additional margin money requirement, if any as per banking norms will be borne by the beneficiary Agency.
What is the maximum Margin Money Assistance provided to Primary Handloom Weavers’ Co-operative Societies/Apex Handloom Weavers’ Co-operative Societies/State Handloom Corporations?
Margin money assistance to Primary Handloom Weavers' Co-operative Societies/Apex Handloom Weavers' Co-operative Societies/State Handloom Corporations will be provided on the recommendation of State Director of Handlooms.
Who is eligible for Interest Subvention under the ‘Concessional Credit/Weaver MUDRA Scheme’?
Subsidized loans at concessional interest rate of 6% for a period of three years will be available to eligible handloom organizations only. However, this is subject to interest subvention cap only upto 7% by the Government of India.
How long is the Interest Subvention applicable after the first disbursal of the loan?
Interest subvention as applicable will be provided maximum for 3 years from the date of first disbursal.
Which handloom organizations are eligible for Credit Guarantee under the ‘Concessional Credit/Weaver MUDRA Scheme’?
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.
Where is the Margin Money Assistance transferred for Handloom Organizations?
Margin money assistance will be transferred directly to loan account of Handloom Organization.
What is the method of fund transfer for Interest Subsidy and Credit Guarantee Fee under the scheme?
The interest subsidy and credit guarantee fee will be transferred to the concerned bank.
Who are eligible to avail loans under the ‘Concessional Credit/Weaver MUDRA Scheme’?
Following agencies are eligible to avail loan from the Banks/Financial Institutions: | - Handloom Weavers involved in weaving activity, | - Weaver Entrepreneur, | - Self Help Groups, | - Joint Liability Groups, | - Handloom organizations, including Primary Handloom Weavers' Co-operative Societies, | - Apex Handloom Weavers' Co-operative Societies, State Handloom Corporations and | - Producers' Companies/Consortia promoted by handloom weavers including those promoted under Cluster/Mega Cluster/Handloom Parks under SITP or other schemes of the Ministry of Textiles
What is the eligibility criterion for individuals who have already availed Margin Money Assistance?
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.
What is the eligibility criterion for Fresh loan?
Fresh loan may be sanctioned after one year of re-payment of previous mudra loan to the handloom beneficiaries who availed loan in the past and have re-paid. Margin money will be available to all the beneficiaries, while interest subsidy and credit guarantee fee will be available to only Handloom Organizations.
How can apply for loan under the scheme?
Eligible beneficiaries are required to approach Participating Bank concerned along with required documents etc. for availing loan benefits under the scheme.