Lok Sabha Question No. 1798 (UNSTARRED), answered on 2023-12-13
Subject: Banking Facilities to Handloom Weavers
Ministry: TEXTILES
Asked by: D. Ravikumar

## LOK SABHA UNSTARRED QUESTION NO. 1798 TO BE ANSWERED ON 13.12.2023

## BANKING FACILITIES TO HANDLOOM WEAVERS

## 1798. SHRI RAVIKUMAR D.:

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

- (a) the steps taken by the Government to boost the handloom exports;

(b) whether it is a fact that approximately 76 per cent of the weavers do not have access to banking facilities, if so, the details thereof; and

(c) whether the Government has taken any steps to connect the weavers to banks, if so, the details thereof?

## उत्तर ANSWER )

## वस्त्र राज्  य मंत्री ( श्रीमती दर्शना जरदोर्

## THE MINISTER OF STATE FOR TEXTILES (SMT. DARSHANA JARDOSH)

- (a): Ministry  of  Textiles  is  implementing  the  following  two  schemes  for  promotion  of traditional  clothing  in  country  i.e.  handlooms  and  welfare  of  handloom  weavers  across  the country:
-  National Handloom Development Programme (NHDP)
-  Raw Material Supply Scheme (RMSS)

Under the NHDP scheme, Handloom Export Promotion Council has been organising/participating  in  various  international  marketing  events/fairs  with  the  handloom exporters for export promotion of handlooms. Further, Sourcing Shows, Buyer Seller Meets, Reverse Buyer Seller Meets are also organised for export promotion.

In additional, financial assistance is provided to the eligible handloom agencies/weavers for raw  materials,  common  infrastructure  development,  marketing  of  handloom  products  in domestic/overseas markets, loans on concessional rates etc. The schemes aim at increasing productivity by providing improved looms & accessories to the handloom weavers, skill up gradation  through  training  programmes,  design  innovation  &  product  diversification  by engaging  designers,  production  of  varieties  of  handloom  products.  Domestic  marketing events are organised in different parts of the country for the weavers to market and sell their products.

(b): Most  of  the  handloom  weavers/  agencies  are  having  access  to  banking  facility. Financial assistance to beneficiaries is provided through banking transactions in implementation of both the above schemes.

(c): Loans  at  concessional  interest  rate  of  6%  for  a  period  of  3  years  is  provided  to handloom organization across the country. Margin money assistance is provided @20% of loan amount subject to maximum of Rs.25,000/- to individual handloom weaver and @20% of  loan  amount  subject  to  maximum  of  Rs.20.00  lakh  (@Rs.2.00  lakh  for  every  100 weaver/worker) to handloom organization. Credit Guarantee fee on loan is also provided to handloom organization only for a period of 3 years.

Weavers  MUDRA  portal  has  been  developed  in  association  with  Punjab  National  Bank (PNB) to cut down delays in disbursement of financial assistance for margin money, interest subvention and credit guarantee fee. Margin money assistance is transferred directly to loan account of weaver while interest subvention and credit guarantee fee is transferred directly to the concerned Bank.

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