- The Weaver MUDRA Scheme provides affordable bank loans to handloom weavers and eligible organisations.
- It offers 20% margin money assistance, up to ₹25,000 for individual weavers and ₹20 lakh for eligible organisations.
- Eligible handloom organisations can receive a concessional interest rate of 6% for three years.
- Loans can be used to purchase yarn, dyes, looms, tools and other production-related requirements.
- Office of the Development Commissioner (Handlooms) Ministry of Textiles, Government of India
- Phone: +91-11-23062945, +91-11-23063684
- Email: dchl@nic.in
- Scheme-related Contact Officers
- Shri M. K. Harikumar, Joint Development Commissioner – Phone: 011-23061865
- Email: mk.harikumar@nic.in
- Bunkar Mitra – Handloom Helpline
- Phone: 1800-208-9988 (Toll-Free)
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Summary of the Scheme
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|---|---|
| Name of Scheme | Weaver MUDRA Scheme (Concessional Credit Scheme) |
| Launch Year | 2013 (Concessional Credit Component approved) |
| Benefits | Margin money up to ₹25,000 for individual weavers and ₹20 lakh for handloom organisations. Eligible organisations also receive 6% interest rate for 3 years. |
| Beneficiary | Individual handloom weavers, weaver entrepreneurs, SHGs, JLGs and eligible handloom organisations. |
| Nodal Agency | Office of the Development Commissioner (Handlooms), Ministry of Textiles |
| Subscription | Subscribe here to get Update Regarding Scheme |
| Mode of Apply | Offline through participating banks and financial institutions. |
Weaver MUDRA Scheme (Concessional Credit Scheme)
Handloom weaving supports many families, but weavers often struggle to find money for yarn, dyes, looms, and tools, and many fall back on costly private moneylenders. The Weaver MUDRA Scheme (WMS), also called the Concessional Credit Scheme, runs under the National Handloom Development Programme (NHDP) of the Office of the Development Commissioner (Handlooms), Ministry of Textiles. The concessional credit component was approved on 24 September 2013, and the Weaver MUDRA model was announced on 28 June 2016. Weavers borrow from participating banks, and the government adds assistance to lower the burden.
Key Benefits
| Benefit | Individual weavers and weaver entrepreneurs | Eligible handloom organisations |
|---|---|---|
| Margin money | 20% of the loan, up to ₹25,000 | 20% of the loan, up to ₹20 lakh (calculated at ₹2 lakh per 100 weavers or workers) |
| Concessional interest | Not available for new loans | 6% for three years |
| Interest subsidy | Not available for new loans | Government pays interest subsidy up to the prescribed 7% limit |
| Credit guarantee fee | Not available for new loans | Government pays it for up to three years |
- Margin money goes directly into the beneficiary’s loan account. Interest subsidy and guarantee fee support go to the bank.
- Individual borrowers who got loans before the revised guidelines took effect on 12 April 2023 keep their applicable benefits for up to three years from their first loan disbursement.
- Someone who has repaid a previous MUDRA loan may apply for another after one year of repayment, subject to bank approval.
What the Loan Can Be Used For
- Yarn, dyes, and other raw materials
- Wages and other production expenses
- New looms, tools, accessories, and equipment, or improving existing facilities
Loan Categories
| Loan amount | Category |
|---|---|
| Up to ₹10 lakh | MUDRA loan |
| Above ₹10 lakh | Concessional credit |
The ₹10 lakh figure only divides the two categories and is not a maximum loan limit. The bank decides the amount after assessing your needs and repayment capacity. The loan period is three years, and instalments and repayment terms depend on your bank and loan agreement.
Who Can Apply?
- Individual handloom weavers and weaver entrepreneurs
- Self-Help Groups (SHGs) and Joint Liability Groups (JLGs) of weavers
- Primary and Apex Handloom Weavers’ Cooperative Societies
- State Handloom Corporations
- Special Purpose Vehicles and consortia in Mega Handloom Clusters and Handloom Parks
- Handloom Producer Companies
Individuals need proof of handloom work, and everyone must meet the participating bank’s assessment. An individual who has already received margin money cannot claim the same assistance again through an SHG, JLG, or organisation. Any additional margin money the bank requires must be arranged by the borrower.
Documents Required
Individual weavers: a Pehchan Card, a Yarn Passbook, or a State Government identity card
Organisations:
- Registration certificate
- Latest balance sheet and profit and loss account
- Details of registered weavers
The bank’s own loan application form is also needed, and it may ask for more documents such as Aadhaar or financial records.
How to Apply
Applications are offline through participating banks.
- Keep your handloom identity proof ready.
- Find a participating bank: a Scheduled Commercial Bank, Regional Rural Bank, State Cooperative Bank, or District Central Cooperative Bank. Your nearest Weavers’ Service Centre (WSC) or State Handloom Department can help.
- Get the bank’s application form. No separate central online beneficiary registration form is specified in the guidelines.
- Fill it in, stating whether you need working capital or a term loan.
- Attach your documents and submit the application.
- Bank assessment: The bank checks your eligibility and repayment capacity.
- Sanction letter: Under the revised guidelines, the bank should issue it within one month.
- Government assistance: After disbursement, the bank claims margin money, interest subsidy, and guarantee fee support through the Handloom Weaver MUDRA Portal, developed with Punjab National Bank.
Individual weavers should not apply on that portal. It is a claim-processing system used by banks.
Weaver MUDRA vs PM MUDRA Yojana
| Weaver MUDRA | PM MUDRA Yojana | |
|---|---|---|
| Ministry | Textiles | Finance |
| Who | Handloom sector | Micro-enterprises in many sectors |
| Margin money | 20%, up to ₹25,000 (individuals) or ₹20 lakh (organisations) | No equivalent |
| Interest benefit | 6% for three years for eligible organisations | No universal fixed rate |
| Loan size | Set by the bank | Up to ₹20 lakh |
PMMY categories are Shishu (up to ₹50,000), Kishor (₹50,000 to ₹5 lakh), Tarun (₹5 lakh to ₹10 lakh), and Tarun Plus (₹10 lakh to ₹20 lakh), the last introduced from 24 October 2024 for those who have repaid earlier Tarun loans.
Contact
Bunkar Mitra Handloom Helpline
Toll-free: 1800-208-9988
Hours: 10:00 AM to 6:00 PM, all seven days
Languages: Hindi, English, Tamil, Telugu, Bengali, Kannada, and Assamese
Office of the Development Commissioner (Handlooms)
Phone: +91-11-23062945, +91-11-23063684
Email: dchl@nic.in
Address: Room No. 56, Udyog Bhawan, New Delhi 110011
Scheme contact officers
Shri M. K. Harikumar, Joint Development Commissioner: 011-23061865, mk.harikumar@nic.in
Ms. Swayamprava Pani, Additional Development Commissioner: 011-23061643, swayamprava.pani@nic.in
Benefits, rates, and procedures can change, so check the Development Commissioner (Handlooms) website and your bank for the latest information before applying.