Canara Bank driving weavers credit card scheme

Canara Bank is aggressively pushing the weavers’ credit card scheme.

This loan scheme for handloom weavers, formulated by the Development Commissioner (Handlooms), Ministry of Textiles in consultation with the Ministry of Finance (Banking Division), aims to provide adequate and timely finance – both for investment purpose and working capital needs – to this unorganised sector of the textile industry.

Canara Bank sources told Business Line that the existing handloom weavers, including those that had utilised credit under other schemes of the bank were also eligible to avail themselves of finance support under this scheme, provided they cleared their existing liabilities with the bank.

The weavers can avail themselves of support up to a maximum of Rs 2 lakh. The loan is for a period of three years and no margin money is required for loans up to Rs 25,000, the official said.

The Government supports this scheme by providing margin money subsidy of Rs 4,200 per weaver (which is claimed by the respective banks) and a three per cent interest subvention for prompt repayment.

“The awareness level about the scheme appears to be pretty low. We have therefore commenced this awareness drive, as the funds available are remaining unutilised,” said U. Ramesh Kumar, General Manager, Canara Bank (Coimbatore Circle).

The Coimbatore Circle of this state-run bank has in the last couple of months sanctioned over 2,200 weavers’ credit cards and disbursed amounts totalling Rs 5.88 crore.

“As a result of this, the subsidy that will flow in would be Rs 92.86 lakh, apart from interest subsidy of three per cent,” said Ramesh Kumar, adding “there are a number of subsidy schemes which need to be pushed”.

Cluster of weavers and ancillary workers who joined to form Societies, Self Help Groups, Joint Liability Groups, Produce Companies are also eligible in their individual capacity.

revathy.lakshminarasimhan@thehindu.co.in

Source: thehindubusinessline