Textiles Minister Exhorts Banks to Sort Out Sector Issues

Textiles Minister Exhorts Banks to Sort Out Sector Issues – 70,000 Weaver Credit Cards Issued Sanctioning Rs. 210 Crore Loan

In order to ensure the availability of subsidised credit to handloom weavers, Union Textiles Minister Dr. K S Rao met heads of major banks here today. He was informed that around 70,000 weaver credit cards have been issued and loan of more than Rs. 210 crore has been sanctioned to handloom weavers. After the meeting Dr. Rao said: I had a meeting with Chief Executive Officers of Nationalised Banks to review the progress of issuance of weaver™s credit card and to sensitise them to the credit needs of weavers. He lauded the efforts being made by banks particularly by State bank of India, Canara Bank, Andhra Bank, 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 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 card at their level, the minister added.

It is widely acknowledged that availability of subsidised working capital is one of the essential requirements for growth of the handloom sector. The government has 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 31.3.2010 is being waived and banks have to provide fresh credit with interest subvention of 3% 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 Weavers™ Credit Cards (WCC) 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, has announced loan to handloom sector at 6% interest rate.

The Ministry has also developed web enabled application for online submission of progress of issuance of weavers™ credit card by banks and state governments.

Tags: Andhra BankCanara BankCredit cardFinance MinisterIndiaLoomTextiles MinistryUnited Bank of India

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