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Weaver MUDRA Scheme (Concessional Credit for Handloom Weavers)

20% margin money on bank loans for handloom weavers

LabourAll of India

Updated on 16 Oct 2026

What you get

Under the National Handloom Development Programme the government pays margin money of 20% of the loan - up to Rs 25,000 for an individual weaver or weaver entrepreneur, and up to Rs 20 lakh for a handloom organisation (Rs 2 lakh for every 100 weavers or workers). Handloom organisations also get loans at a concessional 6% for three years, with interest subvention capped at 7%, and the government pays the credit-guarantee fee on their loans for three years.

Who can apply

Handloom weavers, weaver entrepreneurs, Self Help Groups, Joint Liability Groups, and handloom organisations - primary and apex weavers' cooperative societies, state handloom corporations and producer companies promoted by weavers. Margin money is open to all of them; the interest subsidy and the guarantee fee are for handloom organisations only. A weaver who repaid an earlier MUDRA loan can borrow again one year after repaying it.

How to apply

Take your documents to a participating bank - a scheduled commercial, regional rural or cooperative bank - collect the application form, fill it in, attach copies of the documents and submit it. The bank issues a sanction letter within a month of the application.

Documents you need

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Published by a FormMantra administrator from its official page, myhandlooms.gov.in. Confirm every rule and date there before you apply.
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