Concessional credit support for handloom weavers for working capital and purchase of equipment.
Ministry of Textiles (Office of the Development Commissioner for Handlooms)
💰 Benefit: Bank loan for working capital and equipment with margin money assistance of 20% of the loan amount (up to ₹25,000 for individual weavers). Handloom organisations also get a 6% concessional interest rate for 3 years and GoI-paid credit guarantee fee.
Always verify eligibility on the official website before applying. Scheme rules may change. Facts last checked against the official source on 15 October 2026.
Individual handloom weavers and weaver entrepreneurs, SHGs, JLGs, weavers' co-operative societies, State Handloom Corporations, handloom SPVs and Handloom Producer Companies can apply.
The scheme guidelines do not set an age limit or an income limit. The bank applies its normal lending rules.
Individual weavers get margin money assistance of 20% of the loan amount, up to ₹25,000, credited directly to the loan account.
No. Under the current guidelines, the 6% concessional rate and the government-paid credit guarantee fee are for handloom organisations only. Individual weavers get margin money assistance.
You need the bank's application form and one weaver ID proof (Pehchan card, yarn passbook or State Government ID card), plus the bank's KYC documents. Organisations also need their registration certificate, balance sheet, P&L account and weaver list.
Apply directly at a participating bank branch. The bank should issue a sanction letter within one month.