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11/07/2013 10:58pm

Banks issue 70,000 credit cards and sanction loan worth Rs 210 crore for handloom weavers

image Banks issue 70,000 credit cards and sanction loan worth Rs 210 crore for handloom weavers
New Delhi, Jul 11 (KNN)  When Union textiles Minister met heads of major banks to raise the issue of subsidized credit to handloom weavers today, he was informed that around 70,000 credit cards have already been issued to weavers and loan of more than Rs 210 crore was sanctioned for them.

He also met with CEOs of nationalized banks to review the progress of issuance of weaver’s credit card and sensitise them of the credit needs of weaver, according to an official notification.

“The CEOs of banks have assured me to extend full support in extending the loan to handloom weavers and they will monitor the progress of issuance of weavers’ credit card at their level,” the minister said.

In this regard, he commended the efforts of banks such as SBI, Canara Bank, Andhra Bank and United Bank of India, stating, “SBI is bearing the guarantee fee required by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for providing credit guarantee on loans extended by SBI.”

Needless to say, availability of subsidised working capital is an essential requirement for growth of the handloom sector.  To provide for this, the government had approved the Financial Package as well as the Comprehensive Package in 2011 to ensure the smooth flow of credit to the sector.

“Under the financial package, the overdue loan of handloom cooperatives and individual weavers as on 31.3.2010 is being waived and banks have to provide fresh credit with interest subvention of 3 per cent and credit guarantee for 3 years. Those weavers who are not getting benefits under financial package are being assisted through institutional credit component of comprehensive package wherein Weavers’ Credit Cards (WCC) are being issued to handloom weavers and government is providing 3 per cent interest subvention along with credit guarantee through CGTMSE and margin money assistance,” the notification said.  

Significantly, the Finance Minister in his budget speech for 2013-14, had announced loan to handloom sector at 6 per cent interest rate at the behest of the Textiles Ministry.

A recent development is the web enabled application for online submission of progress of issuance of weavers’ credit card by banks and state governments.  (KNN)

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