Concessions to Handloom Weavers


The Government of India in November, 2011 had approved Revival, Reform and Restructuring (RRR) Package, to waive off the overdue loans and interest of primary weavers cooperatives, other weavers organisations and individual weavers and to subsidised institutional credit.  The said RRR package aimed at waiving the overdue loans (100% principal and 25% interest to be borne by the Government of India and 75% interest and penal interest, if any, by the banks) to eligible handloom cooperative societies and individual weavers as on 31.3.2010, and providing of fresh credit with interest subsidy of 3% for 3 years with credit guarantee to the societies and weavers which are being benefitted under the RRR package.  Based on the representations/recommendations received from the State Governments including Andhra Pradesh, Tamil Nadu, Kerala, Himachal Pradesh, Bihar, Odisha, Karnataka, Uttar Pradesh, West Bengal, Uttrakhand and Maharashtra, particularly seeking relaxation of eligibility norms for potentially viable societies were duly considered by the Government and a revised proposal of RRR package with concessional credit component was formulated and approved by the Government on 27.09.2013 in the form of Modified RRR package.


Presently, loan is being provided at 6% interest by way of interest subvention, under the Concessional Credit Component of National Handloom Development Programme, where, the Government of India interest subvention is capped at 7%.   Apart from this, margin money assistance @ Rs.10,000/- per weaver will be provided to the individual weavers, their self-help group and Joint liability groups with credit guarantee for 3 years by Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE) for which the guarantee fee and annual fee will be paid by the Government of India.  Status of Weavers Credit Card (WCC) and the amount  sanctioned/disbursed during the last few years is given, as under –


(Amount  in lakh)

S.N. Particulars 2012-13 2013-14 2014-15 2015-16


1. Nos. of WCC issued 53,629 71,643 79,210 51,095
2. Loan amount sanctioned 17140.96 19428.80 23353.15 15905.31
3. Loan amount disbursed 7983.13 14679.51 10068.80 11654.49

The coverage of beneficiaries under the RRR Package, have been completed on 28.02.2014.   A total of 39 Apex Weavers Coop. Societies, 9642 Primary Weavers Coop. Societies, 6310 Self Help Groups (SHGs) and 54226 individual weavers have been benefitted of the scheme from across the country (including from backward region), with financial implication of Rs.1089.90 crore.

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