Lok Sabha Question No. 4366 (UNSTARRED), answered on 2025-08-19
Subject: Status of Institutional Credit
Ministry: TEXTILES
Asked by: Shri Dharmendra Yadav

## STATUS OF INSTITUTIONAL CREDIT

## 4366. SHRI DHARMENDRA YADAV:

Will the Minister of TEXTILES वस्त्र मंत्री be pleased to state :

(a)  the  current  status  of  which  institutional  credit  is  accessible  to  handloom  weavers,  particularly  in  Uttar Pradesh and the steps being taken to improve their access to low-interest rate loans and financial literacy;

(b)  the  extent  to  which  the  benefits  of  the  Bunkar  Weaver  Mudra  Scheme  are  being  provided  to  individual weavers, Self-Help Groups (SHGs) and cooperatives, particularly in Uttar Pradesh, and the constraints being faced in the implementation of the said scheme;

(c)  whether  there  are  any  special  provisions  or  relaxations  in  collateral  requirements  for  women  weavers  to avail credit and if so, the details thereof;

(d)  the  specific  policies  being  formulated  by  the  Government  mulated  to  protect  the  handloom  sector  from unfair competition from power-loom and textile products produced on a large scale; and

(e)  the  manner in which the Government is implementing the Handloom Reservation Act to prevent powerloom imitations from being sold as authentic handloom products?

## उत्तर ANSWER वस्त्र राज्  य मंत्री ( श्री पबित्र मार्घेररटा )

## THE MINISTER OF STATE FOR TEXTILES (SHRI PABITRA MARGHERITA)

(a)  to  (c): Ministry  of  Textiles,  Government  of  India  is  implementing  the  Concessional  Credit/Weaver MUDRA Scheme, a component of National Handloom Development Programme (NHDP). The objective of the scheme  is  to  facilitate  access  to  adequate  and  timely  assistance  in  terms  of  loans  to  eligible  handloom beneficiaries including women weavers to meet their credit requirement in a flexible and cost-effective manner across the country including Uttar Pradesh. Under the scheme,  there is a provision of margin money assistance @20% of loan amount subject to maximum of Rs.25,000 for  individual handloom weavers and @20% of loan amount subject to maximum of Rs.20.00 lakh (margin money @Rs.2.00 lakh for every 100 weavers/workers) for Handloom Organizations i.e. Self-Help Groups, Cooperative Societies etc. Interest subsidy is also available for Handloom Organizations @6% on loan amount subject to interest subvention capped upto 7% by the GoI and  Credit  guarantee  on  loan  for  a  period  of  3  years.  Ministry  of  Textiles  is  organizing  awareness camps/chaupals  with  the  close  coordination  of  State  Government  concerned  for  enhancing  the  number  of beneficiaries  of  handloom  schemes  including  Concessional  Credit/Weaver  Mudra  Scheme  throughout  the country  including  Uttar  Pradesh.  There  is  no  special  provision  or  relaxation  in  collateral  requirements  of women weavers to avail credit.

(d) & (e): Ministry of Textiles, Government of India has been implementing the Handlooms (Reservation of Articles for Production) Act, 1985 for production of certain reserved items only on Handlooms and to protect the  interest  of  handloom  weavers  in  the  country.  11  textiles  articles  with  some  technical  specifications  are exclusively reserved for production on handlooms. Central assistance is provided under the scheme to eligible State Governments for effective implementation of the Act. Inspections are carried out in the field by respective State Handloom Departments and Field Offices of the Central Government for enforcing the provisions of the Act.