J&K Handloom Micro Credit Scheme
By Industries & Commerce Department, Government of Jammu & Kashmir
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Quick Answer
Weaver loans raised from Rs 1 lakh to Rs 2 lakh with 10% interest subvention for five years.
- Funding amount
- Up to ₹2L
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Jammu and Kashmir
About this loan
The Micro Credit Plan Scheme under the J&K Wool Processing, Handloom & Handicraft Policy 2020 is the handloom sector's working-capital credit line for weavers and craft entrepreneurs.
The Government has increased the loan amount from the existing Rs 1.00 lakh to Rs 2.00 lakh, and attaches an interest subvention of 10% for a period of 5 years. Doubling the ticket size matters for a weaver buying a season's yarn upfront; the subvention is what makes carrying that credit affordable.
The principal remains a repayable loan — the government's contribution is the interest offset for the first five years.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
Provider
Industries & Commerce Department, Government of Jammu & KashmirJammu · Jammu and Kashmir · India
The Industries & Commerce Department of the Government of Jammu & Kashmir is the Union Territory's department for industrial and commercial development. Its online front door is the J&K Single Window portal, where a business registers once, applies for departmental approvals and…
Learn moreBenefits & Funding
- Amount
- Up to ₹2L
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
A micro credit loan for weavers and craft entrepreneurs, increased from the existing Rs 1.00 lakh to Rs 2.00 lakh, carrying an interest subvention of 10% for a period of 5 years. The loan is bank credit and must be repaid; the subvention offsets the interest cost across the first five years, which for a small weaving unit is usually the difference between formal credit and moneylender rates.
- Disbursement
- Lump Sum
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The lending bank appraises the loan application; the department applies the 10% interest subvention against the sanctioned loan for five years.
Application Process
- 1
Weaver registration
Hold weaver or craft entrepreneur registration under the J&K handloom department.
You - 2
- 3
- 4
- 5
How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
How large is the loan?
Increased from the existing Rs 1.00 lakh to Rs 2.00 lakh.
What is the interest subvention?
10%, for a period of 5 years.
Who can borrow?
Weavers and craft entrepreneurs in the J&K handloom sector.
Is the principal repayable?
Yes. It is a loan; only the interest is subvented.
How does this differ from the Artisan Credit Scheme?
The Micro Credit Plan Scheme sits in the handloom section of the policy and targets weavers and craft entrepreneurs, on the same Rs 2 lakh / 10% / 5-year terms.
Where do I apply?
Through the lending bank, with the scheme administered under the J&K Handloom & Handicraft Policy 2020.
Sources
Data on this page is compiled from official program and provider references.
