SRINAGAR: Artisans and weavers in Kashmir have benefited from financial support, with the Handicrafts and Handloom Department disbursing loans totaling ₹14.71 crore during the first two quarters of the current financial year. The initiative is part of a scheme designed to bolster the working capital available to craftspeople across the region.
Information was available with The Chenab Times that out of 3,885 applications sponsored to various banks for the Credit Card Scheme, 1,332 have been sanctioned, and 1,054 have been disbursed as of the end of September. The department is actively collaborating with lead banks and other financial institutions to broaden access to this vital financial facility.
The disbursed funds are specifically intended to assist craftspeople in establishing independent units and procuring necessary raw materials and tools. This support is particularly crucial for a sector that is inherently labor-intensive and relies heavily on skilled craftsmanship.
Beneficiaries of the scheme are also eligible for an interest subvention of 7%, applied on a tapering basis for five years. This provision aims to help new units achieve self-sustainability and reduce their initial financial burden. Officials noted that since the credit limit was increased from ₹1 lakh to ₹2 lakh in 2020, in accordance with the Wool Processing, Handloom and Handicrafts Policy, more than 10,000 craftsmen have collectively received loans amounting to ₹151 crore.
During the same period, the department has provided approximately ₹19 crore in interest subvention to support these unit holders. This financial assistance is a key component in strengthening the economic base of the handicraft and handloom sector.
The primary objective of the credit card scheme is to reduce the dependence of artisans and weavers on informal lending channels, which often come with higher interest rates and less favorable terms. By facilitating easier access to formal loans for essential needs such as tools, raw materials, and small-scale production units, the department aims to empower traditional crafts and provide them with a more stable financial foundation.
Through these measures, the department hopes to encourage artisans and weavers to expand their production capacity, attract and retain younger generations in these traditional trades, and ultimately strengthen the overall economy of Kashmir’s handloom and handicraft sector. The initiative also seeks to foster greater self-reliance among small unit holders.
Craftspeople interested in availing the benefits of the scheme can submit their applications online through the portal singlewindow.jk.gov.in. Additionally, Common Service Centres established across various districts are available to provide assistance with the registration process.
The department has urged financial institutions and lead banks to prioritize lending to the craft sector. They emphasized the importance of extending timely and hassle-free credit facilities to small unit holders to enable them to build a more robust and self-reliant economic base.
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