Sarkari Yojana
National Handloom Development Programme: Concessional Credit/Weaver MUDRA Scheme
About National Handloom Development Programme: Concessional Credit/Weaver MUDRA Scheme
A component of the National Handloom Development Programme (NHDP), the “Concessional Credit/Weaver MUDRA Scheme” was set up by the Ministry of Textiles, Government of India, to make sure banks give the handloom sector adequate, timely help in meeting its term-loan and working-capital needs, in a flexible and cost-effective way nationwide. Participating Banks: All Scheduled Commercial Banks, Regional Rural Banks, State Cooperative Banks, District Central Co-operative Banks, and any other financial institution approved by the Competent Authority of the Ministry of Textiles, Government of India.
Scheme Overview
Central Government
Ministry Of Textiles
Scheme Details
Eligibility Requirements
To qualify for National Handloom Development Programme: Concessional Credit/Weaver MUDRA Scheme, applicants must satisfy the following conditions:
These agencies can obtain loans from Banks/Financial Institutions:
Handloom weavers engaged in weaving activity,
Handloom weavers engaged in weaving activity,
Weaver entrepreneurs,
Weaver entrepreneurs,
Self Help Groups,
Self Help Groups,
Joint Liability Groups,
Joint Liability Groups,
Handloom organisations, including Primary Handloom Weavers' Co-operative Societies,
Handloom organisations, including Primary Handloom Weavers' Co-operative Societies,
Apex Handloom Weavers' Co-operative Societies and State Handloom…
Apex Handloom Weavers' Co-operative Societies and State Handloom Corporations, and
Producers' Companies/Consortia set up by handloom weavers, including…
Producers' Companies/Consortia set up by handloom weavers, including those formed under Cluster/Mega Cluster/Handloom Parks under SITP or other Ministry of Textiles schemes Note 01: Individual weavers who have already received margin money assistance can't separately claim margin money assistance, interest subvention, or credit guarantee fee through a Handloom Organization, SHG, etc. Note 02: A fresh loan can be sanctioned a year after a beneficiary repays a previous MUDRA loan. Margin money is open to all beneficiaries, whereas interest subsidy and credit guarantee fees apply only to Handloom Organizations.
Benefits Provided
National Handloom Development Programme: Concessional Credit/Weaver MUDRA Scheme provides the following benefits to eligible applicants:
Margin Money Assistance:
Individual Handloom Weavers/Weaver Entrepreneurs get margin money assistance…
Individual Handloom Weavers/Weaver Entrepreneurs get margin money assistance at 20% of the loan amount, capped at ₹25,000/-.
Handloom organizations get margin money assistance at 20%…
Handloom organizations get margin money assistance at 20% of the loan amount, capped at ₹20.00 lakh (₹2.00 lakh margin money for every 100 weavers/workers); any extra margin money required under banking norms falls on the beneficiary agency.
Margin money assistance for Primary Handloom Weavers' Co-operative…
Margin money assistance for Primary Handloom Weavers' Co-operative Societies/Apex Handloom Weavers' Co-operative Societies/State Handloom Corporations is given on the State Director of Handlooms' recommendation. Interest Subvention:
Only eligible handloom organizations can access subsidised loans…
Only eligible handloom organizations can access subsidised loans at a concessional 6% interest rate for three years, subject to a Government of India interest-subvention cap of up to 7%.
Interest subvention, wherever applicable, runs for a maximum…
Interest subvention, wherever applicable, runs for a maximum of 3 years from the date of first disbursal. Credit Guarantee:
Loans to eligible handloom organisations are guaranteed by…
Loans to eligible handloom organisations are guaranteed by the National Credit Guarantee Trustee Company (NCGTC) or the Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE), as decided by the concerned Bank/Financial Institution, with guarantee cover running for 3 years from the date of disbursement.
A handloom organisation sanctioned a loan of ₹1.00…
A handloom organisation sanctioned a loan of ₹1.00 crore can claim margin money assistance of up to ₹20.00 lakhs (at ₹2.00 lakhs per handloom weaver/worker); accordingly, credit guarantee cover applies to loan amounts disbursed up to ₹1.00 Crore.
The Government of India bears the credit guarantee…
The Government of India bears the credit guarantee fee on the disbursed loan amount for 3 years. Note 01: Loans under the scheme run for 3 years for all eligible handloom beneficiaries. Note 02: Individual handloom weavers who took loans before the guidelines were issued remain eligible for interest subsidy and credit guarantee fee benefits for up to 3 years from the date of first disbursal; these benefits stop thereafter for any fresh loans sanctioned to individual weavers. Note 03: Bank loans up to ₹10.00 lakhs fall under MUDRA, while those above ₹10.00 lakhs fall under Concessional Credit. Note 04: Margin money assistance to a Handloom Organization is given pro-rata, taking whichever is lower: ₹2.00 lakh for every 100 weavers/workers, or 20% of the sanctioned loan amount capped at ₹20.00 lakhs. Note 05: Margin money assistance goes directly into the Handloom Organization's loan account, while interest subsidy and credit guarantee fees go to the concerned bank.
Documents Required
Applicants should keep the following documents ready before starting the application:
The weaver's identity card issued by the O/o…
The weaver's identity card issued by the O/o DC(Handlooms)
The weaver's yarn passbook
The weaver's yarn passbook
An identity card that the State Government has…
An identity card that the State Government has issued
For a Handloom Organization – its Registration Certificate,…
For a Handloom Organization – its Registration Certificate, Balance Sheet, Profit & Loss Account, the names of weavers registered with it, etc.
How to Apply
Offline Application
Applicants can apply for National Handloom Development Programme: Concessional Credit/Weaver MUDRA Scheme through the offline application process outlined below.
Eligible beneficiaries must approach their Participating Bank with…
Eligible beneficiaries must approach their Participating Bank with the necessary documents to access loan benefits under the scheme.
Collect the application form from the bank
Collect the application form from the bank.
Complete every mandatory field on the form and…
Complete every mandatory field on the form and attach copies of all required documents.
Hand in the signed, filled-in application form along…
Hand in the signed, filled-in application form along with the documents at the bank. Note 01: The bank issues the applicant a loan sanction letter within one month of the application date. Note 02: Participating Banks sanction loans to Handloom Organizations and must file claims for margin money assistance, interest subvention, and credit guarantee fee disbursal through the Handloom Weaver MUDRA Portal. Note 03: The State Director of Handlooms runs intensive publicity via newspapers, awareness camps, and pamphlets distributed in weavers' localities, to spread word of the scheme's benefits. Release of Funds: Banks submit claims for financial assistance covering margin money, interest subvention, and credit guarantee fee through a centralised online claim disbursement system, the "Handloom Weaver MUDRA Portal, i.e. https://cocd.mypnb.in/login.aspx", developed jointly with Punjab National Bank.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.