Concessional credit to weavers MUDRA scheme

Concessional credit to weavers MUDRA scheme

Srinagar: The GoI in Lok Shaba on Friday said that Concessional Credit is offered to Weaver under the Mudra scheme with Margin Money assistance at 20% of loan amount subject to a maximum of Rs.10,000/- per weaver, loan at 6% interest rate and Credit Guarantee for a period of 3 years is provided to handloom weavers/weaver entrepreneurs across the country.
However, the Government of India interest subvention is capped at 7%.
This information was given by the Union Minister of Textiles, Zubin Irani, in a written reply in the Lok Sabha today.
To ensure timely transfer of financial assistance, Handloom Weaver MUDRA Portal has been developed in association with Punjab National Bank to cut down delay in disbursement of funds for margin money and interest subvention. The margin money assistance is transferred directly to loan account of weaver and interest subvention is transferred to banks through the portal.
The handloom weavers submit their loan applications as per their requirement to participating banks and the Weavers’ Service Centres/State Governments sponsor their loan applications to the participating banks for sanction of loans. Thereafter, the banks sanction loan to the weavers keeping in view the viability of their loan proposals.