The Credit Card Scheme for Artisans & Weavers is an innovative loan initiative launched by the Department of Handicraft & Handloom, Government of Jammu & Kashmir. This scheme aims to provide timely and adequate financial assistance from participating financial institutions to artisans and weavers, enabling them to meet both investment and working capital requirements in a flexible and cost-effective manner. The scheme is implemented across both rural and urban areas and is available to all artisans and weavers registered with the Handicrafts and Handloom Department, who are engaged in production and manufacturing processes.
Benefits
-
No Collateral Required:
Beneficiaries can avail the loan without the need for any collateral security. -
Maximum Credit Limit:
A credit limit of up to ₹2,00,000 is sanctioned. This comprises a loan component of ₹1,80,000 and a mandatory beneficiary contribution of ₹20,000. -
Interest Subvention:
The scheme offers a 7% interest subvention over a period of 5 years. -
Issuance of Photo Card and Passbook:
Beneficiaries receive a photo card indicating the sanctioned credit limit and its validity period, along with a Credit-cum-Passbook that details their borrowing limit, validity, and other relevant information. -
Renewability:
The credit limit is valid for 5 years, subject to an annual review by the bank, with potential for limit enhancement based on performance.
Eligibility
-
Registration:
All artisans and weavers who are duly registered with the Handicrafts and Handloom Department, Jammu & Kashmir. -
Activity:
The scheme is available to those involved in production and manufacturing processes in the handloom and handicrafts sector. -
Selection:
Beneficiaries are selected by a District-level Selection Committee, headed by the General Manager of the District Industries Centre. -
Additional Conditions:
Individual weavers who have already availed of margin money assistance under other schemes (e.g., through handloom organizations or SHGs) are not eligible for additional benefits under this scheme.
Application Process
Offline
Fresh Application:
-
Selection by District Committee:
Eligible beneficiaries are selected by the District-level Selection Committee, chaired by the General Manager of the District Industries Centre. -
Collection of Application Form:
Applicants must collect the application form from the designated office (typically through the district authorities or designated representatives). -
Form Completion:
Fill in all mandatory fields on the form and attach required documents. -
Submission:
Submit the duly filled and signed application form along with the necessary documents to the concerned bank or relevant authority. -
Acknowledgment:
Request and obtain a receipt or acknowledgment that confirms the date, time of submission, and includes a unique identification number (if applicable).
Renewal Application:
- The credit limit is reviewed annually by the bank based on field inspections and operational performance.
- Applicants do not need to submit new financial statements for renewal.
- The annual review may result in either the continuation or enhancement of the existing credit limit, with no fee charged for the review/renewal process.
Documents Required
- Aadhaar Card.
- Proof of registration with the Handicrafts and Handloom Department, J&K.
- Bank account details (passbook, cheque leaf, etc.).
- Any additional documents as specified in the scheme guidelines.
Frequently Asked Questions
-
What is the maximum credit limit sanctioned under this scheme?
The maximum credit limit is ₹2,00,000. -
What is the basis for fixing the credit limit?
The credit limit is determined based on the applicant’s creditworthiness and the capacity to meet the business requirements, with the loan component set at ₹1,80,000 and a mandatory contribution of ₹20,000 by the beneficiary. -
What is the validity period of the credit limit?
The credit limit is valid for 5 years, subject to annual review. -
Do I need to submit my financial statements for the annual review?
No, during the annual review, the borrower is typically not required to submit new financial statements; the review is based on field inspections and performance assessments. -
How can the credit limit be renewed?
Renewal is done through an annual review by the bank, where the credit limit may be continued or enhanced based on the borrower’s performance. -
What is the rate of interest on the loan component?
The scheme offers a 7% interest subvention on the loan component over a period of 5 years. -
How will post-disbursal monitoring be performed?
The bank and relevant authorities conduct regular field inspections and performance assessments to monitor the utilization and repayment of the loan. -
What is the annual target of the department for this scheme?
Specific annual targets are set by the Department of Handicraft & Handloom in coordination with district authorities; please refer to official notifications for detailed figures. -
Is there any fee for the review or renewal of the credit limit?
No fees are charged for the annual review or renewal of the credit limit. -
Can a beneficiary apply if they have already received margin money assistance under another scheme?
No, individual weavers who have already availed of margin money assistance through other channels are not eligible for additional benefits under this scheme. -
How can I apply for a loan under this scheme?
Eligible beneficiaries should visit the designated participating bank or the district authorities to collect and submit the application form along with the required documents.