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Home / Knowledge / News / Textiles / Banks hesitate to provide loans to J&K artisans

Banks hesitate to provide loans to J&K artisans

09
Oct '09

Banks in Jammu and Kashmir are refusing loans, to artisans and other allied people of the handicraft industry, without guarantors. Mentioning this as immoral, Director Handicrafts, Mr. Showkat Ahmad Zargar said that there is no need of any guarantee for the loans of Rs. 50,000 or Rs. 70,000 in the handicraft sector.

He added that the department is taking this issue very seriously. The Centre has provided Rs 4 million to the handicraft industry and it has been transferred to Jammu and Kashmir Bank, which can utilize this amount as guarantee money against such loans, he informed.

If anybody takes loan under such scheme and fails to repay it, the money can be deducted from the transferred amount, said Mr. Zargar. The one who takes loan under this scheme has to pay just 7 percent interest to the bank and rest 5 percent will be paid by the department as subsidy, he added.

Fibre2fashion News Desk - India

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