Srinagar: Artisans and weavers in Jammu and Kashmir have received institutional credit worth ₹151 crore under the Handicrafts and Handloom Department’s Credit Card Scheme since the credit limit was enhanced in 2020, with another ₹14.71 crore disbursed during the first six months of the current financial year.
The department said more than 10,000 craftsmen have availed loans under the scheme since the credit limit was raised from ₹1 lakh to ₹2 lakh in 2020 in line with the Wool Processing, Handloom and Handicrafts Policy.
During April to September 2026, the department sponsored 3,885 applications to banks. Of these, 1,332 applications were sanctioned, while 1,054 loans were disbursed, amounting to ₹14.71 crore by the end of September.
The credit is intended to provide working capital to artisans and weavers for setting up independent units and purchasing raw material, tools and other equipment required for production.
The scheme also provides 7 per cent interest subvention on a tapering basis for five years. Since 2020, the department has provided ₹19 crore in interest subvention to beneficiaries of the scheme.
The department said the financial support is aimed at improving artisans’ access to formal credit and reducing their dependence on informal sources of borrowing. The scheme is also intended to help small craft units expand production and strengthen the traditional handicrafts and handloom sector.
The department is coordinating with lead banks and other financial institutions to improve access to credit for artisans and weavers. It has urged banks to treat the craft sector under priority lending and ensure timely and hassle-free processing of loan applications.
Artisans and weavers can apply online through the J&K government’s single-window portal, singlewindow.jk.gov.in. Common Service Centres operating across districts are also assisting applicants with registration and submission of applications.
