Rs 19.00 Cr interest subvention provided by Handicrafts & Handloom Dept since 2020
SRINAGAR, OCTOBER 8: Artisans and weavers across Kashmir are receiving a fresh boost of working capital, with the Handicrafts and Handloom Department extending loans worth ₹14.71 crore under its flagship Credit Card Scheme in the first two quarters of the current financial year.
Of the 3,885 applications sponsored to banks, 1,332 have been sanctioned and 1,054 disbursed by the end of September 2026.
Sharing details in a press release issued here Thursday, spokesman of the Department stated that the department is working with lead banks and other financial institutions to widen access to this facility. “The funds are meant to help craftspeople set up independent units and buy raw material and tools in a sector that remains heavily labour-intensive,” he said.
The spokesman, as per an official statement, further stated that the beneficiaries also receive interest subvention of 7% on a tapering basis for five years, designed to help new units become self-sustaining. “Since the credit limit was raised from ₹1 lakh to ₹2 lakh in 2020, in line with the Wool Processing, Handloom and Handicrafts Policy, more than 10,000 craftsmen have taken loans totalling ₹151 crore,” he said.
Over the same period, the department has provided interest subvention of ₹19 crore to support these unit-holders, he added.
The scheme is aimed at reducing dependence on informal credit and giving traditional crafts a more stable financial footing. By easing access to formal loans for tools, raw material and small production units, the department hopes to help artisans and weavers expand output, retain younger craftspeople in the trade and strengthen Kashmir’s handloom and handicraft economy.
Artisans and weavers can apply online at singlewindow.jk.gov.in to avail the benefits of the scheme. Common Service Centres set up across districts are available to help with registration.
The spokesman urged the financial institutions and lead banks to treat the craft sector as under priority lending and extend timely, hassle-free credit so that small unit-holders can build a stronger and more self-reliant base.
