AI SummaryTelangana Loan Waiver Scheme for Handloom Weavers is a state government scheme that clears old loans of handloom weavers up to ₹1 lakh. Chief Minister Revanth Reddy announced the waiver in September 2024, and the government issued GO Rt No. 56 on 9th March 2025 to implement it with an initial budget of ₹33 crore.
In January 2026, the government released an additional ₹16.27 crore for the scheme, taking the total outstanding loan amount covered to ₹48.30 crore. Eligible weavers get their loans cleared directly through their bank accounts after a district-level check.
Announcement of Loan Waiver for Handloom Weavers
On 9th March 2025, Telangana government issued GO Rt No. 56 to waive loans up to ₹1 lakh for individual handloom weavers. The government approved ₹33 crore for this scheme. Loans taken between 1st April 2017 and 31st March 2024, including principal and interest, are covered under the waiver.
The waiver applies to loans taken from banks and District Central Cooperative Banks (DCCBs) for handloom production and related work. Weavers whose loans exceed ₹1 lakh must clear the extra amount themselves to qualify for the waiver.
Additional Funds Released in 2026
In January 2026, the government released an additional ₹16.27 crore for the loan waiver scheme. This came as a Sankranti gift for handloom families. With this new amount, the total outstanding loans covered under the scheme reached ₹48.30 crore, and around 6,784 more weavers are expected to get relief. The funds are credited directly to the bank accounts of eligible weavers after verification.
Key Information Summary
| Detail | Information |
|---|---|
| Name of the Scheme | Telangana Loan Waiver Scheme for Handloom Weavers |
| Launched By | Telangana State Government |
| Announced By | Chief Minister Revanth Reddy |
| Purpose | Support Handloom Weavers |
| Beneficiaries | Handloom weavers of Telangana |
| Benefit | Waiver of loans up to ₹1 lakh (principal and interest) |
| Budget | ₹33 crore initially, additional ₹16.27 crore released in January 2026 |
| Loan Period Covered | 1st April 2017 to 31st March 2024 |
| Application Mode | Through Handlooms and Textiles Department |
| Official Website | handtex.telangana.gov.in |
Financial Benefits of the Scheme
Eligible weavers get their old loans cleared under this scheme. The money goes directly to their bank accounts, which helps them start fresh and take new loans for their work.
- Loan waiver up to ₹1 lakh: Loans including principal and interest up to ₹1 lakh are fully waived for eligible weavers.
- Direct bank transfer: The waiver amount is credited directly to the bank accounts of weavers after the checking process is complete.
- Additional budget support: With the extra ₹16.27 crore released in 2026, more weavers are being covered under the scheme.
Weavers can also check the TS Chenetha Bima Scheme for insurance cover and the Telangana Nethanna Bima Scheme for ₹5 lakh insurance support.
Eligibility Requirements
Only weavers who meet the conditions set by the government can get the loan waiver. The district-level committee checks each application before approving it.
- Applicants must be permanent residents of Telangana and actively working as handloom weavers.
- Loans must have been taken between 1st April 2017 and 31st March 2024 from banks or DCCBs for handloom production and related activities.
- Weavers with loans above ₹1 lakh must clear the extra amount themselves and show proof of repayment to qualify.
Documents Needed for Application
Weavers need to keep their loan and identity documents ready when applying for the waiver. These documents are checked by the district committee during verification.
- Aadhaar Card
- Bank account details and passbook
- Loan account details from the bank or DCCB
- Address proof
- Mobile number and email ID
How to Apply for the Loan Waiver
There is no separate online application form for this scheme. The Handlooms and Textiles Department handles the process with the help of banks and district committees. Weavers can follow the steps below to make sure their loan is covered.
STEP 1 - Visit the official website of the Department of Handlooms and Textiles at handtex.telangana.gov.in or contact the Assistant Director, Handlooms and Textiles in your district to check the scheme details.
STEP 2 - Submit your loan details, including the loan account number, bank or DCCB name, and the loan amount taken between 1st April 2017 and 31st March 2024.
STEP 3 - If your loan is above ₹1 lakh, clear the extra amount and keep the proof of repayment ready for submission.
STEP 4 - The District Level Committee verifies the details with the bank and approves eligible applications. After approval, the waiver amount is credited directly to your bank account.
Beneficiary Selection Process
Selection is done by the District Level Committee, which includes the District Collector and officials from the Handlooms department. Banks share loan data with the department, and officials match it with the scheme rules before approving applications. Only weavers whose loans were used for handloom work and fall within the ₹1 lakh limit are approved. Applications that do not meet the conditions are rejected.
Current Status of the Scheme
As of August 2026, the loan waiver process is still going on. The government has released the approved funds in parts, and many weavers have received relief. However, some weavers are still waiting for their applications to be cleared due to delays in verification. Weavers who have not received the benefit yet should keep checking with the district Handlooms and Textiles office.
FAQ's
What is the maximum loan amount that can be waived?
The maximum loan amount waived under Telangana Loan Waiver Scheme for Handloom Weavers is ₹1 lakh, including principal and interest.
What is the total budget for the scheme?
The government initially approved ₹33 crore for the scheme. In January 2026, an additional ₹16.27 crore was released, taking the total outstanding loan amount covered to ₹48.30 crore.
Who qualifies for the scheme?
Handloom weavers who took loans between 1st April 2017 and 31st March 2024 from banks or DCCBs for handloom production and related activities qualify for the benefits.
Are loans from cooperative societies covered?
As per the current rules, the waiver covers loans taken from banks and District Central Cooperative Banks. Loans from cooperative societies are not covered under the scheme.
What documents are required for the application?
Documents needed include Aadhaar Card, bank account details, loan account details, address proof, and mobile number.
How long will it take to process the application?
The processing time depends on the district committee's verification and the government's approval timelines. Many weavers have reported delays, so it is best to keep checking with the department.