The scheme empowers artisans and weavers by providing them with credit cards, enabling easy access to financial resources to grow their handicraft and handloom businesses.
Overview of Credit Card Scheme For Artisans And Weavers Of Handicrafts And Handloom Sector
The Artisans & Weavers Credit Card Scheme, initiated by the Department of Handicraft & Handloom of the Government of Jammu & Kashmir, offers a loan program that aims to provide timely and sufficient financial assistance to Artisans and Weavers. This assistance is designed to fulfill their credit needs for both investment and working capital, in a manner that is flexible, cost-effective, and aligned with their specific requirements. The scheme will be implemented in both rural and urban areas. Eligibility for the scheme is granted to all Artisans and Weavers who are officially registered with the Handicrafts and Handloom Department of Jammu & Kashmir and actively engaged in production and manufacturing processes. Additionally, these individuals must already qualify for credit facilities under existing bank schemes for their proposed activities. The credit limit will remain valid for a period of five years, subject to an annual review conducted by the competent authorities.
Objectives
The objectives of the Credit Card Scheme for Artisans & Weavers are to provide financial support to those engaged in the handicrafts and handloom sector. The main goals are:
- To ensure that artisans and weavers have sufficient funds to buy materials, improve their skills, and expand their businesses.
- To make the financial assistance process quicker and easier for artisans and weavers.
- To support and preserve the traditional crafts and weaving practices that are an important part of cultural heritage.
- To promote economic development and create employment opportunities in the handicrafts and handloom sector.
Benefits
The credit card scheme for artisans and weavers of the handicrafts and handloom sector offers several benefits, including:
Access to Financial Assistance: Artisans and weavers can avail themselves of adequate and timely financial assistance through the scheme.
Maximum Limit: The scheme sets a maximum limit of ₹2 lakhs, allowing artisans and weavers to obtain significant funding for their business needs.
Loan Component: The loan component of the scheme amounts to ₹1.8 lakhs, providing substantial support for artisans and weavers’ ventures.
Beneficiary’s Contribution: Artisans and weavers must contribute ₹20,000, ensuring their active involvement in the scheme.
Interest Subsidy: The scheme offers an interest subsidy of 7% for five years, starting from the date of loan disbursement. This subsidy helps reduce the financial burden on artisans and weavers.
Annual Review: The competent authorities conduct a yearly review of the scheme to ensure its effectiveness and address any necessary adjustments.
Features
- Financial Inclusion: The scheme aims to include artisans and weavers by providing them with access to formal financial institutions and services.
- Simplified Application Process: The scheme streamlines the application process, making it easier for artisans and weavers to apply for credit cards and avail themselves of financial assistance.
- Maximum Loan Limit: A maximum loan limit of ₹2 lakh is set under the scheme, allowing artisans and weavers to secure substantial funds to support their business operations.
- Loan Components: The scheme comprises a loan component of ₹1.8 lakh, providing a significant portion of the required financial support.
- Beneficiary Contribution: Artisans and weavers are expected to contribute ₹20,000 as their own investment in the scheme, ensuring their commitment and involvement in the business.
- Interest Subsidy: An interest subsidy of 7% is provided to the beneficiaries for a period of five years. This subsidy helps reduce the burden of interest payments, making the scheme more affordable and sustainable for artisans and weavers.
- Annual Review: Competent authorities conduct an annual review of the scheme to evaluate its progress, and effectiveness, and address any necessary modifications or improvements.
- Sector-specific Focus: The scheme is designed exclusively for artisans and weavers operating in the handicrafts and handloom sector, recognizing their unique needs and challenges.
- Timely Assistance: The scheme ensures that artisans and weavers receive timely financial assistance from the designated financial institutions, facilitating smoother business operations and growth.
Eligibility
To be eligible for the Credit Card Scheme, the applicant must:
- Be an artisan or weaver actively engaged in the handicraft or handloom sector.
- Be registered with the Handicrafts and Handloom Department.
- Have a valid Aadhaar Card or any other government ID proof.
- Not be a defaulter in any other loan scheme.
Application Process
Fresh Application
- Visit the nearest office of the Handicrafts and Handloom Department or the official website.
- Fill out the application form with all the required details.
- Attach all the necessary documents.
- Submit the application form either online or at the department office.
- Upon verification, the credit card will be issued to the eligible applicants.
Renewal Application
- If you already have a credit card under this scheme, you can apply for renewal near the expiration date.
- Submit an application for renewal along with the current credit card details.
- The department will review the application and, if approved, will renew the credit card.
Documents Required
- Application Form.
- Aadhaar Card or any other government ID proof.
- Registration Certificate from Handicrafts and Handloom Department.
- Passport-size photographs.
- Bank Account details.
- Any additional documents as required by the department.
This scheme is designed to be a boon for artisans and weavers, allowing them to focus on their craft while having the financial backing they need to flourish and contribute to the preservation of their heritage.
Challenges Faced by Artisans and Weavers
Financial Constraints
Artisans and weavers often don’t have enough money to buy materials or tools for their work. It’s like wanting to cook but not having enough money to buy ingredients. They need funds to keep their craft going, but sometimes it’s hard to get that money.
Market Competition
Imagine if you made a beautiful painting, but there are so many paintings out there that people might not notice yours. This is what artisans and weavers face. There are so many products in the market, and sometimes machine-made items are cheaper and faster to make, so they find it tough to sell their hand-made products.
Skill Upgradation
Sometimes artisans and weavers are using old techniques that might not be popular anymore. It’s like still using an old-fashioned phone when everyone else is using smartphones. They need to learn new skills and techniques to keep up with what people like and want to buy.
Other Supporting Schemes and Programs
Government Initiatives
The government sometimes steps in to help, like a big brother. They create programs and schemes where artisans and weavers can get money, learn new skills, or find new markets to sell their products. These initiatives are designed to give a helping hand to these craftsmen.
NGO’s Support
There are kind-hearted people and groups called Non-Governmental Organizations (NGOs) that also want to help. They might run programs where artisans and weavers can get materials, learn new things, or find ways to sell their products without worrying about competition.
Training Programs
Imagine going to a special school where you can learn cool new ways to make your craft even better. Training programs are like these schools for artisans and weavers. They can learn new techniques, how to use new tools, and even how to market and sell their products better.
FAQs For Credit Card Scheme For Artisans And Weavers
The maximum loan amount to be authorised under the plan would be set at ₹2,00,000
The credit limit is usually based on the applicant’s business needs, qualifications, and repayment capacity
The credit limit typically has a validity of 5 years, but you should confirm the exact duration with the department.
Yes, submitting your financial statement is generally necessary for the annual review of the credit limit.
To renew the credit limit, you need to apply for renewal through the Handicrafts and Handloom Department before the validity expires.
Fees for review/renewal are not there.
Interest rates can change; please contact the Handicrafts and Handloom Department for the most current rates.
Post-disbursal monitoring is usually done through regular reports and sometimes site visits by department officials.
The annual target can vary from year to year; you should check with the Handicrafts and Handloom Department for current goals. What Is The Maximum Credit Limit That Can Be Sanctioned Under This Scheme?
What Would Be The Basis Of Fixing The Credit Limit?
What Would Be The Validity Of The Credit Limit?
Do I Need To Submit My Financial Statement For The Purpose Of The Annual Review?
How Can The Credit Limit Be Renewed?
What Would Be Fees For The Review/ Renewal Of The Limit?
What Would Be The Rate Of Interest On The Loan?
How Would The Post-Disbursal Monitoring Be Performed?
What Is The Annual Target Of The Department For This Scheme?
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