Ministry of Textiles26-August, 2013 14:21 IST
Loan to Handlooms
In order to provide loans at concessional rate to handloom weavers, the Government of India (GoI) has approved Institutional Credit component under Integrated Handlooms Development Scheme (IHDS) on 18th December 2011, wherein the GoI is providing margin money assistance @ Rs.4200/- per weaver, interest subvention @ 3% p.a. for 3 years from the date of the first disbursal and credit guarantee through Credit Guarantee Trust for Micro & Small Enterprises (CGTMSE). This scheme is applicable to all handloom weavers, including weavers belonging to schedule caste (SC) and schedule tribes (STs). Further, Finance Minister has announced loan to handloom sector at 6% interest rate in the budget of 2013-14. Besides, handloom weaving falls under the category of priority sector lending.

The information was given by the Minister of State in the Ministry of Textiles, Smt. Panabaaka Lakshmi in a written reply in the Lok Sabha today.

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DS/SJM/RK
(Release ID :98637)