The National Handloom Development Programme (NHDP): Concessional Credit/Weaver MUDRA Scheme is a transformative initiative by the Ministry of Textiles, Government of India. Designed to uplift the handloom sector, this scheme ensures timely access to affordable credit for weavers and handloom organizations across the country. By offering margin money assistance, interest subvention, and credit guarantees, the programme fosters sustainable growth and empowers millions of artisans engaged in weaving activities.
In this article, we’ll explore everything you need to know about this scheme, including its benefits, eligibility criteria, application process, and frequently asked questions. Whether you’re a handloom weaver, entrepreneur, or part of a cooperative society, this guide will help you navigate the opportunities provided under the NHDP and Weaver MUDRA Scheme.
What is the National Handloom Development Programme (NHDP)?
The National Handloom Development Programme (NHDP) is an umbrella initiative aimed at providing comprehensive support to the handloom sector. One of its key components is the Concessional Credit/Weaver MUDRA Scheme, which focuses on addressing the financial needs of handloom weavers and organizations. This scheme bridges the gap between traditional artisans and modern banking systems, ensuring they have access to cost-effective credit solutions for both working capital and long-term investments.
Key Objectives of the Scheme
- Timely Financial Assistance => Ensuring that handloom weavers and organizations receive loans without delays.
- Affordable Credit => Offering loans at concessional interest rates to reduce the financial burden.
- Capacity Building => Supporting weavers with margin money assistance and credit guarantees to enhance their entrepreneurial capabilities.
- Inclusive Growth => Encouraging participation from individual weavers, cooperatives, self-help groups (SHGs), and other handloom organizations.
Participating Banks and Financial Institutions
The following institutions are eligible to participate in the scheme:
- All Scheduled Commercial Banks
- Regional Rural Banks (RRBs)
- State Cooperative Banks
- District Central Co-operative Banks
- Any financial institution approved by the Ministry of Textiles, Government of India
Benefits of the Scheme
1. Margin Money Assistance
- Individual Handloom Weavers/Entrepreneurs: Receive margin money assistance at 20% of the loan amount, capped at ₹25,000.
- Handloom Organizations: Eligible for margin money assistance at 20% of the loan amount, up to ₹20 lakh (₹2 lakh per 100 weavers/workers).
- Primary/Apex Handloom Cooperatives & State Corporations: Margin money assistance is disbursed based on recommendations from the State Director of Handlooms.
2. Interest Subvention
- Eligible handloom organizations can avail subsidized loans at a concessional interest rate of 6% for up to three years.
- The interest subvention is capped at 7% by the Government of India.
3. Credit Guarantee
- Loans extended to eligible organizations are guaranteed by the National Credit Guarantee Trustee Company (NCGTC) or the Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE).
- The credit guarantee fee is borne by the government for three years.
Eligibility Criteria
The scheme is open to a wide range of beneficiaries, including;
- Individual handloom weavers are actively engaged in weaving activities.
- Weaver entrepreneurs and self-help groups (SHGs).
- Joint liability groups (JLGs).
- Handloom organizations such as Primary Handloom Weavers’ Co-operative Societies, Apex Handloom Weavers’ Co-operative Societies, and State Handloom Corporations.
- Producers’ companies and consortia were promoted under schemes like Cluster/Mega Cluster/Handloom Parks.
Important Notes:
- Individuals who have already availed margin money assistance cannot claim additional benefits under group entities like SHGs.
- Fresh loans may be sanctioned after one year of repaying a previous MUDRA loan.
Loan Categories Under the Scheme
- Loans up to ₹10 lakh – Covered under the MUDRA Scheme.
- Loans above ₹10 lakh – Covered under Concessional Credit.
How to Apply
Offline Application Steps:
- Visit the Participating Bank: Approach a participating bank or financial institution with the required documents.
- Collect and Fill the Application Form: Obtain the application form from the bank, fill in all mandatory details, and attach necessary documents.
- Submit the Application: Submit the duly signed form along with copies of supporting documents.
- Await Loan Sanction: The bank will issue a loan sanction letter within one month of application submission.
Online Claim Disbursement:
Banks can submit claims for margin money assistance, interest subvention, and credit guarantee fees through the Handloom Weaver MUDRA Portal (https://cocd.mypnb.in/login.aspx).
Documents Required
- Identity card issued by the Office of the Development Commissioner (Handlooms).
- Yarn passbook.
- Identity card issued by the State Government.
- For organizations: Registration certificate, balance sheet, profit & loss account, and a list of registered weavers.
Frequently Asked Questions (FAQs)
Q1. What is the Weaver MUDRA Scheme?
A1. It’s a component of the NHDP that provides concessional credit to handloom weavers and organizations to meet their financial needs.
Q2. Who is eligible for interest subvention?
A2. Only eligible handloom organizations can avail interest subvention at a concessional rate of 6% for three years.
Q3. Where is the margin money assistance transferred?
A3. For handloom organizations, margin money assistance is transferred directly to their loan accounts.
Q4. How long is the interest subvention applicable?
A4. The interest subvention is available for a maximum of three years from the date of the first loan disbursement.
Q5. Can individuals apply for fresh loans?
A5. Yes, fresh loans can be sanctioned after one year of repaying a previous MUDRA loan.
Conclusion
The National Handloom Development Programme: Concessional Credit/Weaver MUDRA Scheme is a game-changer for India’s handloom sector. By providing financial assistance, reducing interest rates, and offering credit guarantees, the scheme empowers weavers and organizations to grow sustainably. If you’re a part of the handloom community, don’t miss out on this opportunity to access affordable credit and build a brighter future.
