Scheme for Revival of Handloom Sector by waiver of overdues in the
Working Capital and Term Loans of Individual Weavers, Self Help
Groups (SHGs), Joint Liability Groups (JLGs), and Master Weavers
A centrally sponsored scheme of Ministry of Textiles, Govt. of India for the
revival of handloom sector to be implemented by the banks by 31.05.2012.
Nodal agency NABARD is the Nodal Agency for the implementation of the
scheme by Banks/lending institution and CGTMSE.
Applicability The scheme would be applicable in the States who have given
letter of commitment / signed Memorandum of Understanding
with Central Govt. and NABARD.
Eligible Individual Weavers, Self Help Groups (SHGs), Joint Liability
beneficiaries Groups (JLGs), and Master Weavers.
Ineligible a. State Handloom Development Corporations, corporates,
beneficiaries partnership firms, weaver cooperative societies/any similar
b. Loans restructured/rescheduled in the normal course by the
Bank in the past under any Govt. of India/State Govt.
scheme or under One Time Settlement of the Bank as per the
RBI guidelines, being covered under Securitization &
Reconstruction of Financial Assets & Enforcement of Security
Interest Act (SARFAESI) Act / other legal recourse by the
Bank as on the date of the scheme
c. Beneficiaries of any Govt. sponsored schemes who have
misappropriated the funds.
Amount 100% of the principal and 25% of interest overdues in the loan
eligible for account of the handloom weavers as on the date of loan
waiver/write becoming NPA and continues to outstand as on 31.03.2010 and
off by Govt. till date, subject to ceiling of Rs.50,000/- per individual, shall be
of India waived by Govt. of India.
Overdues exceeding the ceiling of Rs.50,000/- will have to be
cleared by the weaver borrower.
Waiver/write 75% of the interest overdues, penal interest and other charges,
off by Bank shall be waived by the Bank.
Grant of a. Grant of fresh loan to the loan waiver beneficiaries is
Fresh Loan mandatory
to the loan b. Minimum loan amount: Rs.20,000/- (Beyond Rs.20,000/-,
waiver need based)
beneficiaries c. Purpose of loan: To continue handloom weaving activity
d. Rate of interest: As prevailing in the Bank
e. Interest subvention of 3% from Govt. of India is available for
the first 3 years from the date of first disbursement. No
interest subvention would be available if the loan account
becomes non performing asset.
f. Security: Assets created out of loan
g. Service charges, insurance cover etc., shall be as per
prevailing guidelines of the Bank.
CGMSE cover a. The fresh loans granted by the Bank shall be covered under
Credit Guarantee Fund for Micro & Small Enterprises
b. The Guarantee Fee and Annual Service Fee due under
CGMSE shall be paid by Govt. of India for a period of initial 3
c. After 3 years, the CGMSE annual service fee has to be borne
by the weaver- borrower.
Display of The list of beneficiaries under the scheme shall be displayed in
the list of the notice board by the branches. Any handloom weaver who is
beneficiaries aggrieved on the ground that his name has not been included in
and list, may make a representation through the branch from which
Redressal of he received the loan or directly to the Grievance Redressal
grievances Officer (GRO) at the Bank’s Circle Office concerned and every
such representation shall be disposed of within 30 days of
Conditions apply. The information provided above is only illustrative and not exhaustive.
For more details, please contact your nearest Canara Bank branch or E-mail to: