Handloom Weavers Loan Waiver Scheme in Telengana

Handloom Weavers Loan Waiver Scheme in Telengana

The handloom weavers’ loan waiver scheme started in Telangana will focus on waiving the burden of loan from the weavers. Not just that, it is focused towards improvement of their working conditions. There are many ways in which this scheme aims to do that. Let us learn more about it in detail.

Launch details

The Hyderabad government has announced this scheme on Thursday, 10th Nov 2017. K Chandrasekhar Rao, the Chief Minister of Telangana, was present at the launch event and he has said that the process will be implemented soon. Etela Rajender, the Finance Minister of the state, launched the scheme recently.

Key features of the scheme

  • Credit repayment by the state: The main feature of this scheme is that the state government will repay the loans of the weavers. They will settle with the banks making the weavers debt free.
  • Amount that will be repaid: The state will pay Rs. 1 lakh on behalf of each of the weavers who have taken the loan. This will help him or her ease the burden of the loan.
  • Empowerment of weavers: This scheme will thus help the weavers get full empowerment in their venture. They can now spend their hard earned money towards buying raw materials instead of repaying loan amounts.
  • Benefit to majority: In total 2467 handloom weavers will get the benefit of this scheme, that is, the government will repay the debt of 2467 weavers.
  • Market creation for weavers: One of the prime reasons the weavers suffer is because they do not have market for their items. The government will bring more marketing facilities to promote these businesses.
  • Bank transfer: The amount, that is, 1 lakh rupees, will directly be sent into the bank account of the weavers. It will be sent to that bank, from where the weaver has taken the loan.
  • Focus on ancillary industries: The ancillary industry workers will also get the benefit of this scheme apart from the workers of handloom industry. This includes workers that are involved with dying fabrics and winders.
  • Related issues: The government is all set to give proper focus to the issues to handloom and related industries. They will ensure that the workers get raw materials not only easily but at a cheaper cost.

Eligibility

  • Place of Residence: In order to be eligible for this scheme you must be a resident of Telangana. This scheme is only for those weavers who are legal residents of Telangana.
  • Only for those associated with handloom industry: This scheme is exclusively for the handloom weavers or for those who are associated with the handloom industry.
  • Credit approval timing: Those weavers who have taken the credit from the banks between the time period – 1st June 2014 and 31st March 2017 – are the only ones eligible to get the benefits of this state.
  • Specific banks only: Along with the above mentioned criteria you have to also fulfill another criteria that is, you have to take the loans from some nationalized bank or some Cooperative Central bank only.
  • Credit limit specified: In order to be eligible for full repayment under this scheme you have to have taken a loan amount that is either less than or equal to one lakh. But even if your loan amount exceeds Rs. 1 lakh, you can take part in this scheme.

Budget

As per the official reports, Rs. 10.10 crores has been allocated for the implementation of this scheme. This amount will be distributed between the 2467 weavers, to repay their debts. Apart from this amount, the state will also distribute around Rs. 5.60 crores among 1018 weavers so as to improve their working condition.

This scheme is a positive step towards the development of the state and it will help improve the condition of the handloom weavers for sure. Also, it will take off the burden of loans from them so that they can focus more on expanding their business.

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