Srinagar, Oct 08: Artisans and weavers across Kashmir have received a boost to their working capital, with the Handicrafts and Handloom Department facilitating loans worth Rs 14.71 crore under its Credit Card Scheme during the first two quarters of the current financial year.
Of the 3,885 applications sponsored by the department to banks during the period, 1,332 were sanctioned and 1,054 loans had been disbursed by the end of September 2026.
The department said it is working with lead banks and other financial institutions to expand access to credit for artisans and weavers. The loans are intended to help craftspeople establish independent units and purchase raw materials, tools and other inputs required for production.
A departmental spokesman said the scheme was particularly aimed at supporting a labour-intensive sector by improving access to formal working capital.
Under the scheme, beneficiaries are provided interest subvention of 7% on a tapering basis for five years, intended to reduce the financial burden on new units and help them become self-sustaining.
The spokesman said that since the credit limit under the scheme was increased from Rs 1 lakh to Rs 2 lakh in 2020 in line with the Wool Processing, Handloom and Handicrafts Policy, more than 10,000 craftsmen had availed loans amounting to Rs 151 crore.
During the same period, the department has provided Rs 19 crore in interest subvention to support the beneficiaries.
The department said the scheme seeks to reduce dependence on informal sources of credit and provide traditional crafts with a more stable financial base.
By facilitating formal loans for tools, raw materials and small production units, the initiative is aimed at helping artisans and weavers increase production, retain younger generations in traditional crafts and strengthen the handloom and handicraft sector.
Artisans and weavers can apply online through the government’s single-window portal to avail the benefits of the scheme. Common Service Centres established across districts are also available to assist applicants with registration.
The department has urged financial institutions and lead banks to treat the craft sector as a priority lending area and ensure timely and hassle-free credit to small unit-holders.
It said easier access to institutional finance would help artisans and weavers build stronger and more self-reliant enterprises while supporting the continuity of traditional crafts in the region.
