Credit Card Scheme for Artisans & Weavers, J&K — ₹2L Loan — Frequently Asked Questions

The maximum credit limit is ₹2,00,000. That is structured as a loan component of ₹1.80 lakh plus a beneficiary contribution of ₹20,000. On top of the limit, you get a 7% interest subvention for five years and no collateral requirement. The money can go towards investment needs or working capital.

You need to be an artisan or weaver duly registered with the Handicrafts and Handloom Department, Jammu & Kashmir. You must also be actively involved in production and manufacturing, and you must be otherwise eligible for credit facilities for your proposed activity under existing bank schemes. The scheme covers both rural and urban areas of Jammu & Kashmir.

No fixed closing date has been announced — the scheme runs on a rolling, always-open basis. Applications are processed offline, so the practical step is to get your registration in order and then approach the department or your District Industries Centre for the form.

No. This is a debt facility, so there is no equity dilution and no stake taken in your enterprise. What you receive is a credit limit that you repay, softened by the 7% interest subvention and the fact that no collateral has to be pledged.

No collateral security is required under this scheme. That is one of its main advantages, since it opens the door to artisans and weavers who may not have assets to pledge against a conventional bank loan.

Beneficiaries receive a 7% interest subvention over a period of 5 years. This reduces the effective cost of the borrowing compared with a standard credit facility.

The credit limit is valid for five years, subject to an annual review by the competent authorities. The yearly review means the limit is reassessed rather than simply running untouched for the full term.

The scheme does not list DPIIT recognition or MSME registration among its conditions. What it does require is that you are duly registered with the Handicrafts and Handloom Department, Jammu & Kashmir, and that you are eligible for credit under existing bank schemes for the activity you propose.

Applications are processed offline. Contact the Handicrafts and Handloom Department, J&K, or the District Industries Centre for the application form and further details. Make sure your departmental registration is complete first, then submit the filled form along with all required supporting documents to the relevant district authorities.

A District-level Selection Committee handles the selection. It is headed by the General Manager of the District Industries Centre and evaluates applications against the stated eligibility criteria and the needs of the artisans and weavers involved in production and manufacturing.

Credit Card Scheme for Artisans & Weavers, J&K — ₹2L Loan is offered by Department of Handicraft and Handloom, Government of Jammu and Kashmir, a government body. It is provided as non-dilutive funding.