Centre announces comprehensive package for UP weavers
21 Nov 2011
The government yesterday announced a comprehensive package of assistance for handloom weavers in Uttar Pradesh, which will help individual weavers in UP, a large number of whom need loan waiver cover on defaults while others are facing stressed economic conditions.
Minister of commerce and industry and textiles Anand Sharma announced a six-fold strategy to offer financial support to these weavers as part of the handloom package.
Under the scheme, `Weavers Credit Cards' will be issued to eligible individual weavers to enable them access loans up to Rs2 lakh, and generally in the range of Rs35,000 to Rs50,000, for a period of 3 years, without any collateral security.
The scheme has been finalised and banks will soon be advised to implement it, the minister said.
The scheme provides for interest subsidy of 3 per cent on loans to weavers so that they can access funds at 7-8 per cent interest, for a period of three years.
Weavers will also be eligible for margin money assistance of Rs4,200 to 5,400 per head, which will help them leverage loan funds.
