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( 12 Jul 2019)
Weaver MUDRA Scheme margins money at 20% of loan amount

As per the Concessional Credit/Weaver MUDRA Scheme, Margin Money assistance at 20 per cent of loan amount subject to a maximum of Rs. 10,000/- per weaver, loan at 6 per cent interest rate and Credit Guarantee for a period of 3 years is provided to handloom weavers/weaver entrepreneurs across the country. However, the Government of India interest subvention is capped at 7 per cent.

In order to transfer financial assistance on time, Handloom Weaver MUDRA Portal has been developed in association with Punjab National Bank to cut down delay in disbursement of funds for margin money and interest subvention. The margin money assistance is transferred directly to loan account of weaver and interest subvention is transferred to banks through the portal.

Handloom weavers submit their loan applications as per their requirement to participating banks and the Weavers’ Service Centres/State Governments sponsor their loan applications to the participating banks for sanction of loans. Thereafter, the banks sanction loan to the weavers keeping in view the viability of their loan proposals.