Home / Knowledge / News / Textiles / Banks urged to increase funds to handloom sector
Banks urged to increase funds to handloom sector
05
Jun '10
As regards improving the credit availability to the handloom and handicraft sectors, the sub-committee of the State Level Bankers' Committee (SLBC) has urged the banks, to augment financing to these sectors.

This is because, the credit availability to handloom and handicraft sectors, does not match with those available to other sectors and a huge mass of the Primary Weavers' Co-operative Societies have turned useless.

Considering the circumstances, banks and financial institutions have been appealed to extend support to the clusters that have been notified by the textile department of Orissa government and to lend more pursuant to the cluster approach.

Recently, during a sub-committee meet, it was resolved that, banks should provide funds to handicraft artisans, while covering the same under the credit guarantee funds trust, for micro and small entrepreneurs.

Banks were authorized to grant DRI loans to weavers and artisans from handloom and handicraft sector, who belong in the below poverty line (BPL) category. Also, the panel issued directions that, the loan applications by the self help groups (SHGs), functional in these sectors and are awaiting approval, should be cleared as soon as possible.

Furthermore, in the District Credit Committee (DCC) meet, it was decided to include the handloom and handicraft sectors as products for regular agenda and that, the functioning of the banks in funding these sectors needs, to be assessed meticulously.

Textile and Handloom Department has also been called on to convey to the district collectors, regarding formation of District Level Task Force (DLTF).

It is noteworthy that, the handloom and handicraft sectors besides employing around 5 lakh skilled artisans and weavers, also pays for the country's export earnings. Nonetheless, as the handloom weavers lean on the micro finance institutions (MFIs), these institutions take undue advantage of them, by charging them with extravagant interest rates, on loans advanced by them.

Raising credit flow in favour of these sectors, could aid the artisans and weavers to avail of loans with lower interest rates.

Fibre2Fashion News Desk - India

Must ReadView All

Apparel/Garments | On 29th Mar 2017

Indonesian garment exports to remain stable in 2017: API

Garment exports from Indonesia are likely to remain stable this year...

Courtesy: Carrington

Apparel/Garments | On 29th Mar 2017

Carrington Workwear signs JV with TMG Textiles

Carrington Workwear, one of the largest producers of workwear fabrics ...

Apparel/Garments | On 29th Mar 2017

Myanmar CMP garment exports to touch $2.2bn in 2017

Cutting, making and packaging (CMP) garment exports from Myanmar are...

Interviews View All

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Kevin Nelson
TissueGen

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Robert Brunner
Devereux

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


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