Weaver MUDRA Scheme | Concessional Credit for Weavers

Overview

The Weaver MUDRA Scheme is a component of the National Handloom Development Programme (NHDP) implemented by the Ministry of Textiles. It extends credit support to handloom weavers through MUDRA-linked concessional loans, helping them meet working capital needs and upgrade their equipment.

Objective

The scheme aims to improve access to institutional credit for handloom weavers who are often excluded from formal banking. By offering concessional interest rates and credit guarantee, it reduces the financial stress on weaver households and helps sustain the handloom tradition.

Benefits

• Loans up to Rs. 10 lakh at concessional interest rates
• Interest subvention of 7% per annum
• Credit guarantee cover for the loan
• Support for working capital, loom upgradation, and raw materials
• Linkage with MUDRA for easy bank processing

Eligibility

• Individual handloom weavers with a valid Weaver Identity Card
• Members of primary weavers cooperatives
• Self-help groups or joint liability groups of weavers
• Applicants must be actively engaged in handloom weaving

Exclusions

• Power-loom or mill sector workers are not eligible
• Weavers who have defaulted on government-backed loans
• Applicants not holding a valid Weaver Identity Card or equivalent proof

Application Process

1. Visit the nearest scheduled commercial bank or regional rural bank
2. Present the Weaver Identity Card and apply for the MUDRA loan
3. Bank assesses the application and forwards it for credit guarantee coverage
4. Loan is sanctioned and disbursed upon approval
5. Interest subvention is credited directly to the loan account

Documents Required

• Weaver Identity Card
• Aadhaar card
• Bank account passbook
• Proof of handloom weaving activity
• Cooperative membership certificate, if applicable
• Loan application form from the bank