National Handloom Development Programme: Concessional Credit/Weaver MUDRA Scheme

The Ministry of Textiles, Government of India, runs the National Handloom Development Programme, which includes the Concessional Credit/Weaver MUDRA Scheme. This initiative is intended to give the handloom sector dependable financial backing, ensuring weavers and related enterprises can obtain bank credit without delay. It covers both term loans and working capital needs, offering flexible and economical terms across the country.

Support under the scheme comes in the form of margin money assistance, interest subvention, and credit guarantee cover. These measures are directed at individual weavers, entrepreneurs, and handloom organisations, with the aim of strengthening their operations and long-term viability. As part of the wider NHDP framework, the scheme contributes to safeguarding traditional craft livelihoods and cultural heritage through economic uplift.

Eligible beneficiaries must approach any of the Participating Banks—Scheduled Commercial Banks, Regional Rural Banks, State Cooperative Banks, or District Central Co-operative Banks—to seek loan benefits under the scheme. The application form is to be obtained directly from the selected bank. Applicants should complete all mandatory fields in the form with accurate details and enclose copies of every required supporting document. The completed and signed application, along with all necessary paperwork, must be submitted to the bank. Within one (1) month of the application date, the bank will issue a loan sanction letter, subject to its internal assessment and due diligence.

Applications undergo review by the participating banks—Scheduled Commercial Banks, Regional Rural Banks, State Cooperative Banks, and District Central Co-operative Banks—in line with their own internal credit assessment criteria. After submission, the bank processes the application and, upon approval, issues a loan sanction letter within one month from the date of application.

The banks handle the sanctioning of loans and are also responsible for submitting claims for margin money assistance, interest subvention, and credit guarantee fees through the Handloom Weaver MUDRA Portal.