Srinagar, Oct 8 (NVI): Loans worth Rs 14.71 crore have been provided to artisans and weavers in Jammu and Kashmir under the Handicrafts and Handloom Department’s Credit Card Scheme during the first two quarters of the current financial year, officials said on Thursday.
Of the 3,885 applications sponsored to banks during the period, 1,332 have been sanctioned and 1,054 disbursed as of September-end, they said.
The scheme is aimed at providing working capital to artisans and weavers to establish independent units and purchase raw materials, tools and other equipment required for production.
The department is coordinating with lead banks and other financial institutions to expand access to formal credit for people associated with the traditional crafts sector, an official spokesperson said.
Beneficiaries are also provided interest subvention of 7 per cent on a tapering basis for five years, aimed at helping new units become financially self-sustaining, the spokesperson said.
Since the credit limit under the scheme was enhanced from Rs 1 lakh to Rs 2 lakh in 2020 in line with the Wool Processing, Handloom and Handicrafts Policy, more than 10,000 artisans have availed loans totalling Rs 151 crore, he said.
During the same period, the department has provided interest subvention of Rs 19 crore to support the beneficiaries, the spokesperson added.
The scheme seeks to reduce artisans’ dependence on informal sources of credit and provide financial support for setting up small production units, purchasing raw material and tools, officials said.
The department said the initiative is also aimed at expanding production, retaining younger people in traditional crafts and strengthening the handloom and handicraft sector in Kashmir.
Artisans and weavers can apply online through the Jammu and Kashmir government’s single-window portal, while Common Service Centres operating across districts can assist applicants with registration, it said.
The department has also urged financial institutions and lead banks to treat the craft sector as a priority lending area and ensure timely and hassle-free credit to small unit-holders.—(NVI)
