The Credit Card Scheme for Artisans & Weavers is a transformative initiative by the Department of Handicrafts & Handloom, Government of Jammu & Kashmir, aimed at providing financial support to artisans and weavers. This scheme ensures timely and adequate credit assistance to meet both investment and working capital needs flexibly and cost-effectively. By empowering artisans and weavers, the government seeks to preserve traditional crafts, boost local economies, and enhance the livelihoods of those involved in the handicrafts and handloom sector.
Overview of J&K CCS Scheme
The Credit Card Scheme for Artisans & Weavers is designed to provide hassle-free access to credit for artisans and weavers registered with the Handicrafts and Handloom Department, J&K . The scheme covers both rural and urban areas and offers a maximum credit limit of ₹2,00,000 with significant benefits such as no collateral security and a 7% interest subvention over five years.
Key Benefits of the Scheme
- No Collateral Security Required :
Beneficiaries do not need to pledge any assets as security, making it easier for small-scale artisans and weavers to access credit. - Maximum Credit Limit :
- A maximum credit limit of ₹2,00,000 is available.
- The loan component is ₹1,80,000, with the beneficiary contributing ₹20,000.
- Interest Subvention :
Beneficiaries enjoy a 7% interest subvention on the loan amount, significantly reducing the cost of borrowing over the five-year tenure. - Photo Credit Card and Passbook :
- A photo card indicating the sanctioned credit limit and validity period is issued to beneficiaries.
- A passbook or credit-cum-passbook is also provided, detailing essential information such as the name, address, borrowing limit, and validity period.
- Validity Period :
The credit limit is valid for five years, subject to an annual review by the bank.
Eligibility Criteria
To qualify for the Credit Card Scheme for Artisans & Weavers, applicants must meet the following criteria:
- The applicant must be duly registered with the Handicrafts and Handloom Department, J&K.
- The applicant must be actively involved in production and manufacturing processes within the handicrafts and handloom sector.
- The applicant must otherwise be eligible for credit facilities under existing bank schemes.
Selection Process: A District-level Selection Committee, headed by the General Manager of the District Industries Centre, evaluates and selects beneficiaries for the scheme.
How to Apply – Offline Process
Fresh Applications:
- Ensure you are registered with the Handicrafts and Handloom Department, J&K.
- Submit your application to the District-level Selection Committee through the designated office.
- Await evaluation and selection by the committee.
Renewal Applications:
- The credit limit is valid for five years, subject to an annual review by the bank.
- No financial statements are required for the annual review. The decision is based on the performance assessment conducted by field staff and account operations.
- Requests for enhancement of the sanctioned limit can also be considered during the review.
- No fees are charged for the renewal process.
Necessary Documents
To apply for the scheme, ensure you have the following documents ready:
- Aadhaar Card (mandatory for identification).
- Proof of Registration with the Handicrafts and Handloom Department, J&K.
- Bank Account Details for loan disbursement.
Frequently Asked Questions (FAQs)
Q.1 What is the maximum credit limit under this scheme?
- The maximum credit limit is ₹2,00,000, with a loan component of ₹1,80,000 and a beneficiary contribution of ₹20,000.
Q.2 How is the credit limit determined?
- The credit limit is fixed based on the applicant’s production capacity, working capital requirements, and other relevant factors.
Q.3 What is the validity period of the credit limit?
- The credit limit is valid for five years, subject to an annual review.
Q.4 Do I need to submit financial statements for the annual review?
- No, financial statements are not required. The review is based on performance assessments and account operations.
Q.5 How can the credit limit be renewed?
- The credit limit is automatically reviewed annually by the bank. If approved, it is renewed without additional documentation or fees.
Q.6 Are there any fees for renewal or review?
- No fees are charged for the renewal or review process.
Q.7 What is the rate of interest on the loan?
- The loan carries a reduced interest rate due to a 7% interest subvention provided by the government.
Q.8 How is post-disbursal monitoring performed?
- Post-disbursal monitoring is conducted by field staff through regular inspections and reviews of account operations.
Q.9 What is the annual target for this scheme?
- The annual target is determined by the Department of Handicrafts & Handloom, J&K, based on the number of eligible beneficiaries and available resources.
Conclusion
The Credit Card Scheme for Artisans & Weavers is a lifeline for the traditional handicrafts and handloom sector in Jammu & Kashmir. By offering affordable credit, eliminating collateral requirements, and simplifying the application process, the scheme empowers artisans and weavers to sustain and grow their businesses. If you are a registered artisan or weaver, take advantage of this opportunity to secure financial support and contribute to the preservation of Jammu & Kashmir’s rich cultural heritage.
For more information, visit the official website of the Department of Handicrafts & Handloom, J&K, or consult the scheme guidelines.
Sources and References
- Guidelines for Credit Card Scheme for Artisans & Weavers
- Official Communication from the Department of Handicrafts & Handloom, J&K
