New & Existing handloom weavers involved in weaving activity.
20% of project cost. Ministry of Textile - GoI to bear margin @ 20% of project cost with a maximum of Rs.10,000. Balance margin money amount to be borne by borrower.
Assessment of loan
- Working capital: WC limit be assessed by simplified turnover method (i.e. Bank finance will be 20% of turnover & 5% of turnover will be the margin). The Working Capital limit by way of Cash Credit is expected to be utilized as a revolving Cash credit and will provide any number of withdrawals and repayment within the limit.
- Term loan: Need based term loan to be extended to acquire assets like tools,equipments,accessories,machinaries etc for carrying out weaving activities. The Term Loan will be repayable in monthly or quarterly installments within 3 to 5 years depending upon the project profitability/repayment capacity of the borrower, over & above the gestation period upto 06 months.
Renewal/ Review of WC limits
Renewal/ Review of Credit Facilities will be done annually.
Issue of Card (For availment of Cash Credit account)
- For loans upto Rs 0.50 lakh To be disbursed by way of MUDRA Card
- For loans above Rs 0.50 lakh Amount will be disbursed by way of opening regular CC account. The beneficiaries under the scheme will be issued with a RUPAY Card having the daily limit of Rs.25000/- per day or as per the extant guidelines of the bank in respect of card limit and daily withdrawal limit
Validity period of limit
The limit sanctioned will be valid for 3 years, subject to annual review by the bank, based on genuine trade transactions and satisfactory track record. After 03 years the Credit facilities may continue but no subsidies/subvention will be provided by the government.