SRINAGAR: The Handicrafts and Handloom Department has facilitated loans worth ₹14.71 crore for artisans and weavers across Kashmir under its Credit Card Scheme during the first two quarters of the current financial year.
According to an official statement, 3,885 applications were sponsored to banks during the period, of which 1,332 were sanctioned and 1,054 loans were disbursed by the end of September 2026.
A departmental spokesperson said the scheme is aimed at providing working capital to artisans and weavers for establishing independent units and purchasing raw materials and tools.
The beneficiaries are also eligible for an interest subvention of 7 per cent on a tapering basis for five years to support the viability of new units.
The department said that since the credit limit under the scheme was enhanced from ₹1 lakh to ₹2 lakh in 2020 under the Wool Processing, Handloom and Handicrafts Policy, more than 10,000 artisans and weavers have availed loans amounting to ₹151 crore.
During the same period, the department has provided interest subvention worth ₹19 crore to beneficiaries, it added.
Officials said the scheme is intended to reduce dependence on informal sources of credit and strengthen the financial base of the handicrafts and handloom sector by improving access to institutional finance.
The department said artisans and weavers can apply for the scheme through the government’s single-window portal and seek assistance from Common Service Centres established across districts for registration and application procedures.
The spokesperson also urged banks and financial institutions to extend timely credit to the sector under priority lending norms to support small-scale craft enterprises.
