J&K Handloom WC Interest Subvention
By Industries & Commerce Department, Government of Jammu & Kashmir
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Quick Answer
5% interest subvention on working capital borrowing for handloom sector units in Jammu & Kashmir.
- Funding amount
- Varies
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Jammu and Kashmir
About this subsidy
The J&K Wool Processing, Handloom & Handicraft Policy 2020 provides handloom units an interest subvention of 5% on working capital.
Unlike the one-time working capital subsidy, this is an ongoing offset against the cost of borrowing: it reduces the effective interest rate a handloom unit pays on its working capital facility. Handloom production ties up cash for months between yarn purchase and sale, so cheaper working capital is often more useful than a capital grant.
The policy states the 5% rate without a rupee ceiling or a stated duration, so the value depends on the size of your working capital facility.
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.
Subsidy 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
What You Get
An interest subvention of 5% on working capital for handloom sector units. It lowers the effective borrowing cost on the unit's working capital facility rather than paying out a lump sum, and it can be held alongside the policy's one-time 10% working capital subsidy. The policy states the rate without a rupee ceiling.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
No competitive selection. Claims are verified against the working capital sanction and the interest actually debited by the lender.
Application Process
- 1
Register the unit
Register the handloom unit under the Handloom & Handicraft Policy 2020.
You - 2
- 3
- 4
- 5
How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is the subvention rate?
5% on working capital.
Who is eligible?
Handloom sector units in Jammu & Kashmir under the Wool Processing, Handloom & Handicraft Policy 2020.
Is there a rupee cap?
The policy states the 5% rate without specifying a ceiling.
Is this the same as the working capital subsidy?
No. The subsidy is a one-time 10% payment capped at Rs 5 lakh; this is an interest offset on working capital borrowing.
Is it repayable?
No, a subvention is not repaid — it reduces interest you owe your lender.
Where do I apply?
Through the J&K Single Window portal under the Wool Processing, Handloom & Handicraft Policy 2020.
Sources
Data on this page is compiled from official program and provider references.
