Home / Knowledge / News / Textiles / Indian Textile Minister discusses easier credit with banks
Indian Textile Minister discusses easier credit with banks
Jul '13
Mr. K Sambasiva Rao
Mr. K Sambasiva Rao
India’s Textiles Minister K Sambasiva Rao met heads of major nationalized banks to discuss easier availability of subsidized credit to handloom weavers.
He was informed that around 70,000 Weavers’ Credit Cards (WCCs) have been issued and loan of more than Rs. 2.10 billion has been sanctioned to handloom weavers, according to an official press release.
The Minister reviewed the progress of issuance of WCCs and lauded the efforts being made by banks, particularly by State bank of India, Canara Bank, Andhra Bank, and United Bank of India, in this regard.
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, the Minister said.
“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 cards at their level,” the Minister added. 
The availability of subsidised working capital is one of the essential requirements for growth of the handloom sector in India. In view of the same, the Government approved ‘Financial Package’ as well as ‘Comprehensive Package’ in 2011 to ensure the smooth flow of credit to handloom sector.
Under the financial package, the overdue loan of handloom cooperatives and individual weavers as on March 31, 2010, is being waived and banks have to provide fresh credit with interest subvention of 3 percent 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 WCCs are being issued to handloom weavers and government is providing 3% interest subvention along with credit guarantee through CGTMSE and margin money assistance. 
Further, appreciating the importance of much needed subsidised credit for handloom sector, on the request of Ministry of Textiles, the Finance Minister in his Budget speech for 2013-14, announced loan to handloom sector at 6 percent interest rate. 
The Ministry has also developed web enabled application www.wcchandlooms.in for online submission of progress of issuance of WCCs by banks and state governments. 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search