A scheme for providing required amount of finance for machinery or working capital at low interest rate with ease to the workmen registered as artisans in the urban as well as rural areas of the State.
(1) Purpose: The Handloom and Handicrafts artisans of Cottage industries, Gujarat state require financial assistance for purchase of machinery or raw materials for development of their business. For this, artisans have to depend on financial institutions/private money lenders. Since their interest rates are high, it becomes difficult for the artisans of Cottage industry to sustain themselves in the present market. Under these circumstances, this scheme has been introduced with an aim to provide working capital at low interest rates to the workmen in urban and rural areas registered as artisans with the Indext-C of Cottage and Rural Industries Department.
(2) Eligibility Criteria:
1. Age: More than 18 years.
2. The Artisan must have an Identity card issued by the Development Commissioner Handloom/ Handicraft/ Indext-C.
3. The Artisan must have skills of Handloom or Handicraft art.
4. Physically Handicapped/Blind Artisans can also avail the benefits of this scheme.
5. No Income criteria.
(3) Maximum limit of loan:
A beneficiary can avail a maximum credit limit of Rs. 1,00,000/- for machinery or working capital (for purchase of raw materials) or both under this Scheme.
1. Margin Money Subsidy:
Subsidy will be available after disbursement of loan as mentioned below.
|Margin Money Subsidy
|General Category (Male)
||Reserved Category (Scheduled Castes/ Scheduled Tribes) / Women/ blind or handicapped having 40% or more disability
2. Interest Subsidy
Under the scheme, Interest subsidy will be available at the rate of 7%, which shall be credited in the beneficiary’s account, on half yearly basis after receipt of the subsidy claim from the Bank. The subsidy will be available for a maximum period of three years. However, further benefit under this scheme can be extended, upon the recommendation of Bank, to such beneficiaries who regularly pay the instalments as fixed by the Bank, for a maximum of three times with the same conditions.
(5) Rate of Interest:
As per Banks/ Reserve Bank of India norms.
(6) Implementing Agency:
District Industries Centre is the nodal agency for implementation of the scheme.
(7) Financial Institutions:
(1) Nationalized Banks (2) All Regional Rural Banks (3) Co-operative Banks (4) Public Sector Banks (5) Private Banks
(8) The Artisans of Cottage Industries can get financial assistance for the following purposes to develop existing or new business.
(1) To purchase raw material (2) To purchase equipment, tools and machinery.
(9) Repayment of Loan:
The instalments of loan shall be effective after disbursement of loan, as fixed by the Bank. The loan, along with its interest, will be repaid regularly within a period of minimum of one year (12 monthly instalments) and a maximum of three years (36 monthly instalments), and this shall be binding upon the beneficiary.
(10) Documents required to be attached with the application:
Prescribed Application (in two copies), two passport size photographs (photos to be affixed on both the copies of application),
Certified copies of the following documents shall be enclosed with the Application:
Election Card/ Adhaar Card, Artisan Identity Card, Birth Certificate or School Leaving Certificate, Quotation with TIN/VAT number of the equipment’s-tools to be purchased, Proof of location of the proposed business (rent slip/ rent agreement, House Tax Receipt, etc.), if electricity is to be used then its proof/ authority letter.