The “Scheme for Waiver of Loans to Handloom and Powerloom Sector” is a flagship welfare initiative launched by the Industries and Commerce Department, Government of Andhra Pradesh. Aimed at uplifting weavers, Self-Help Groups (SHGs), and small powerloom units, the scheme provides debt redemption for loans availed from Scheduled Commercial Banks, Cooperative Banks, Urban Cooperative Banks, and Regional Rural Banks (RRBs). It also paves the way for fresh credit access to beneficiaries whose debts are waived.
Key Highlights of the Scheme
• Scheme Name: Loan Waiver Scheme for Handloom and Powerloom Sector
• Launched By: Government of Andhra Pradesh – Industries & Commerce Department
• Beneficiaries: Individual Weavers, SHGs, Powerloom Unit Owners
• Loan Waiver Limit:
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₹1,00,000 per Individual Weaver
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₹5,00,000 per Weaver Group (₹1,00,000 limit per member)
• Scope: Loans outstanding as of 31st March 2014
• Application Mode: Online via District Level Committee coordination
• Target Institutions: All SCBs, Co-operative Banks, UCBs, and RRBs within A.P.
Benefits
• Complete Debt Redemption of weaving loans up to:
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₹1,00,000 for individual weavers
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₹5,00,000 for weaver groups, with a limit of ₹1,00,000 per member
• Eligibility for Fresh Loans post-waiver (equal to the outstanding amount waived)
• Coverage of Loans from Various Banks: Including Scheduled Banks, RRBs, Co-operative and Urban Co-operative Banks
• Support for Powerloom Units with <5 HP connection, availing 50% power subsidy
Eligibility Criteria
• Loans must have been availed for weaving purposes
• Loans must have been outstanding as of 31.03.2014
• Eligible Beneficiaries:
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Individual weavers
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Weaver groups (on a pro-rata basis)
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Holders of Weaver Credit Cards
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Owners of powerloom units (<5 HP) under the power subsidy scheme
• Total loan from all banks combined must not exceed scheme ceilings
Exclusions
• Individuals who have already availed loan waivers under other group schemes like DWACRA, MEPMA, or SHG-based loan waivers for the same purpose are not eligible
• Dual benefits under multiple government schemes are strictly prohibited
How to Apply – Online Process
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Identification of Beneficiaries:
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Assistant Director (Handlooms & Textiles) collects lists from banks
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District Level Committee (DLC), chaired by the District Collector, reviews the list
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Scrutiny & Approval:
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DLC verifies and approves the beneficiary list within 7 days
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List forwarded to the Commissioner of Handlooms and Textiles
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Release of Funds:
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Funds are credited directly to the banks from a central account
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Record Notings:
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Debt waiver benefits are updated in the Loan Passbooks/Weaver Credit Cards
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Grievance Redressal:
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Any aggrieved weaver may submit a grievance via their lending branch
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All complaints must be resolved within 30 days
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Essential Documents
• Domicile/Residential Certificate (Andhra Pradesh)
• Income Certificate
• Aadhaar Card
• Passport-size Photograph
• Loan Statement
• Sanction Letter from Bank
• Land Documents (if applicable)
• Bank Account Details
Frequently Asked Questions (FAQs)
Q: When was the scheme first launched?
A: The government order containing scheme guidelines was issued in 2023.
Q: What loans are eligible for waiver?
A: Loans taken for weaving purposes and outstanding as of 31st March 2014.
Q: Is the scheme limited to any type of weavers?
A: It includes individual weavers, weaver groups, powerloom owners (under 5 HP), and Weaver Credit Card holders.
Q: Are RRB loans covered?
A: Yes, loans from RRBs within Andhra Pradesh are eligible.
Q: Are loans from banks outside Andhra Pradesh eligible?
A: No, only loans disbursed through institutions located within Andhra Pradesh are eligible.
Q: Is there a loan ceiling?
A: Yes, ₹1 lakh for individual weavers and ₹5 lakhs for weaver groups (with ₹1 lakh/member limit).
Q: Can individuals who received SHG loan waivers also apply?
A: No, duplication of benefits is not allowed.
Q: Is there any income or age limit?
A: There is no explicit income or age cap, but other loan-related eligibility criteria apply.
Q: Can Telangana residents apply?
A: No, only residents of Andhra Pradesh are eligible.
Sources and References
• Andhra Pradesh Handlooms & Textiles Department
• Official Scheme Guidelines (Government Order)
• District Collectorate Circulars
• Scheme Portal (UYEGP)
Note: For more information, visit your district’s Handloom Department Office or contact the local bank branch through which the loan was disbursed. Stay updated for the online application link and real-time beneficiary status tracking.
