Weaver MUDRA Scheme — Handloom Credit up to ₹1 Crore

The Weaver MUDRA Scheme is the credit arm of the National Handloom Development Programme, delivered by the Ministry of Textiles, Government of India. It addresses a practical problem in the handloom trade: weavers, and the organisations built around them, often find it hard to raise affordable bank finance — whether for long-term needs such as looms and other assets, or for the money required to keep production moving.

The scheme lowers the cost and the risk of that borrowing rather than handing out a direct grant. Three supports sit behind an eligible loan — margin money assistance that reduces how much of the project you must fund yourself, interest subvention that pulls the effective rate down, and a credit guarantee that shields the lender if repayment goes wrong.

Borrowing runs from ₹25,000 to ₹1 crore. Amounts of up to ₹10 lakh are extended under the MUDRA route, while loans above ₹10 lakh, up to the ₹1 crore ceiling, fall under Concessional Credit. Funds are released by participating banks after their own appraisal, and the window never closes — there is no application deadline, so a weaver or organisation can approach a bank at any point in the year.

Because support reaches beneficiaries through a bank instead of a centralised portal, the scheme is open to individual weavers, weaver entrepreneurs, Self Help Groups, Joint Liability Groups, co-operative societies, State Handloom Corporations and weaver-led producer companies alike.

• Loans ranging from ₹25,000 to ₹1 crore
• Margin money assistance of up to ₹20 lakh for organisations and ₹25,000 for individuals
• Concessional 6% per annum interest for eligible organisations, for three years
• Credit guarantee from NCGTC or CGTMSE for three years, fee paid by the Centre
• Open round the year — no application deadline
• Applied for at a participating bank, not through a central portal

Eligibility here is decided by your link to handloom weaving, not by company stage, turnover or sector codes. The scheme lists the following as eligible:

• Individual handloom weavers who are actually engaged in weaving activity
• Weaver entrepreneurs
• Self Help Groups (SHGs) and Joint Liability Groups (JLGs)
• Handloom organisations, including Primary and Apex Handloom Weavers' Co-operative Societies and State Handloom Corporations
• Producers' Companies and Consortia promoted by handloom weavers, including those formed under a Cluster, Mega Cluster or Handloom Park set up under SITP or another Ministry of Textiles scheme

Two conditions are worth noting before you apply. An individual weaver who has already taken margin money assistance once cannot receive further financial assistance again by being counted within an organisation's strength. And where a beneficiary has taken a MUDRA loan earlier and repaid it, a fresh loan can be sanctioned only after one year of repayment.

Weaver MUDRA Scheme — Handloom Credit up to ₹1 Crore is open to startups at any stage. It is open to startups registered anywhere in India.

Weaver MUDRA Scheme — Handloom Credit up to ₹1 Crore accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Loans. Beneficiaries can raise both term loans and working capital from a network of participating banks. The MUDRA route covers borrowing of up to ₹10.00 lakh, while larger requirements — anything above ₹10.00 lakh and up to a maximum of ₹1.00 crore — are handled under Concessional Credit.

Margin money assistance. Individual weavers and weaver entrepreneurs can receive 20% of the loan amount, capped at ₹25,000. Handloom organisations can receive 20% of the loan amount up to ₹20.00 lakh, calculated pro rata at ₹2.00 lakh for every 100 weavers or workers, whichever of the two amounts is lower. The assistance is credited directly into the beneficiary's loan account.

Interest subvention. Eligible handloom organisations borrow at a concessional rate of 6% per annum for three years. The Government of India pays the subvention to the bank, with the subsidy capped at 7%.

Credit guarantee. To reduce risk for lenders, loans to eligible handloom organisations are guaranteed by the National Credit Guarantee Trustee Company (NCGTC) or the Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) for three years from the date of disbursement. The guarantee fee for that period is borne entirely by the Government of India.

Weaver MUDRA Scheme — Handloom Credit up to ₹1 Crore is offered by Ministry of Textiles, a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

There is no central committee or pitch round here. Once an application reaches a participating bank, the bank assesses it against its own internal credit norms and takes the lending decision.

If the proposal is approved, the bank issues a loan sanction letter to the applicant within one month of the application date.

Beyond sanctioning the loan, the bank is also responsible for lodging the claims connected to the scheme — margin money assistance, interest subvention and the credit guarantee fee — through the Handloom Weaver MUDRA Portal.

Before you apply to Weaver MUDRA Scheme — Handloom Credit up to ₹1 Crore, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

Weaver MUDRA Scheme — Handloom Credit up to ₹1 Crore is best suited for startups in India seeking non-dilutive funding of ₹25,000 – ₹1Cr. If that describes your startup, review the eligibility criteria above before applying.