J&K Grameen Bank Weaver MUDRA Scheme


The Scheme aims at providing adequate and timely assistance from the Bank to the weavers to meet their credit requirements i.e. for investment needs as well as for working capital in a flexible and cost effective manner. The scheme would be implemented in both rural and urban areas.


Existing Handloom Weavers engaged in weaving activity


For working capital requirements of the weaver

Extent of Loan:

Maximum upto Rs. 2.00 lakh


20% of project cost, Government of India will bear the margin amount @ 20% of project cost or Rs. 10000/- whichever is less. Remaining amount to be borne by the borrower.

Assessment of Loan Amount

Working Capital Limit will be fixed on assessment of working capital requirements as well as cost of tools and equipments required for carrying out weaving activity OR will be assessed by simplified turnover method i.e. 20% of turnover will be bank finance while as 5% of turnover will be margin.

Government Incentive :

Interest Subsidy:
To provide working capital at the Interest Rate of 6% to handloom sector the quantum of interest subsidy to be borne by GOI will be limited to the difference between the actual rate of interest as applicable charged by the bank and 6% interest to be borne by the borrower. The maximum interest subvention is capped at 7%. (The actual rate to be charged by the bank shall be the same as charged to MUDRA Loans). Interest subsidy as applicable will be provided for maximum 3 years from the date of first disbursement and shall be credited to the borrower’s account on quarterly basis.

Margin Money Assistance:
An amount @ 20% of project cost or Rs. 10000/- whichever is less per weaver will be provided to leverage this amount for sourcing loan from the bank. Margin will be credited to the account of borrower after sanction of the loan.

Annual Guarantee Fee of CGTMSE:
All accounts to be covered under CGTMSE and fee shall be borne by:

i) For Loans upto Rs. 50000/- : Annual Guarantee Fee (AGF) of 0.25% of loan amount will be borne by GOI, AGF above 0.25% of loan amount to be borne by Bank.
ii) For Loans above Rs. 50000/-: Entire CGTMSE fee shall be borne by GOI for a maximum period of three years.
(Note: The Loans shall be covered under CGTMSE as and when applicable to our bank and claims to be submitted accordingly)

Renewal / Review:

Renewal / Review of working capital limit shall be done annually.

Validity Period of Facility:

The J&K Grameen Bank Weaver Mudra Scheme limit sanctioned will be valid for three years, subject to annual review by bank based on genuine trade transactions and satisfactory track record.


Primary: Hypothecation of assets i.e. raw material, work in progress, finished goods etc. created out of bank finance & margin.
Collateral : NIL
(The loans shall be covered under CGTMSE as and when applicable to our bank)

* Conditions Apply