Weaver MUDRA Scheme — Handloom Credit up to ₹1 Crore — Frequently Asked Questions

The scheme supports borrowing from ₹25,000 up to ₹1 crore. Loans of up to ₹10 lakh come under the MUDRA route, and anything above ₹10 lakh, right up to the ₹1 crore ceiling, is covered under Concessional Credit.

Individual handloom weavers actively involved in weaving, weaver entrepreneurs, Self Help Groups, Joint Liability Groups, and handloom organisations such as Primary and Apex Handloom Weavers' Co-operative Societies, State Handloom Corporations, and Producers' Companies or Consortia promoted by weavers — including those formed under a Cluster, Mega Cluster or Handloom Park under SITP or another Ministry of Textiles scheme.

The scheme's eligibility conditions do not mention DPIIT recognition or Udyam/MSME registration. What matters is your status as a handloom weaver or a qualifying handloom organisation, and whether the participating bank clears your application under its own credit assessment.

No. The scheme runs on a rolling basis and stays open all year, so you can approach a participating bank whenever you are ready. Once you submit, the bank is expected to issue a sanction letter within one month of the application date if it approves the loan.

It is a loan scheme, not a grant, and no equity is taken in your business. The support comes in the form of credit from a bank, softened by margin money assistance, interest subvention and a credit guarantee.

Individual weavers and weaver entrepreneurs get 20% of the loan amount, subject to a maximum of ₹25,000. Handloom organisations get 20% of the loan amount up to ₹20 lakh, worked out pro rata at ₹2 lakh per 100 weavers or workers, whichever is lower. The amount is credited straight into the loan account.

Eligible handloom organisations pay a concessional rate of 6% per annum, and this benefit runs for three years. The Government of India pays the interest subvention to the bank, with the subsidy capped at 7%.

Loans given to eligible handloom organisations are backed by the National Credit Guarantee Trustee Company (NCGTC) or the Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE). The cover lasts three years from the disbursement date, and the Government of India pays the guarantee fee for that period.

Approach any participating bank — a Scheduled Commercial Bank, Regional Rural Bank, State Cooperative Bank or District Central Co-operative Bank. Collect the application form from the branch, fill in every mandatory field accurately, attach the supporting documents, and submit the signed form to the bank. The bank then appraises the proposal under its internal credit norms and, if approved, issues a sanction letter within one month.

The scheme itself does not publish a fixed document list. The participating bank provides its application form and tells you which supporting documents to attach, so ask your branch for the exact checklist, complete all mandatory fields, and submit the signed form with copies of those documents.

Yes, but not immediately. If you have previously taken a MUDRA loan, a fresh loan can be sanctioned only after one year of repayment. Note also that an individual weaver who has already received margin money assistance cannot get further financial assistance again by counting within an organisation's strength.

Weaver MUDRA Scheme — Handloom Credit up to ₹1 Crore is offered by Ministry of Textiles, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.