AI SummaryDeen Dayal Upadhyaya Bunkar Yojana gives a 7% interest subvention on short-term working capital loans for women weavers in Arunachal Pradesh, helping them grow their weaving business with affordable bank credit.
Scheme has been closed or it was a one time scheme which has been closed by the government.
Government of Arunachal Pradesh launched this scheme to encourage women weavers to take bank loans for their working capital needs. By cutting the interest burden, the scheme lets weavers spend more on yarn, equipment and daily requirements instead of worrying about heavy interest payments.
The scheme covers short-term credit, cash credit limits, working capital limits, Weavers Credit Card and Swarojgar Credit Card. It is open to individual weavers and groups of women weavers, and it works with Pradhan Mantri Mudra Yojana to give better financial support.
Deen Dayal Upadhyaya Bunkar Yojana - Introduction
Deen Dayal Upadhyaya Bunkar Yojana is a state-level scheme made for women weavers of Arunachal Pradesh. The main aim is simple: make bank credit cheap and easy to get. Loans taken from commercial banks and regional rural banks on or after 01.04.2017 and disbursed during the current financial year can get the interest subsidy.
Interest subsidy is calculated on the short-term loan amount from the date of disbursement up to the date of actual repayment or up to the due date fixed by the bank, whichever is earlier, for a maximum period of one year. NABARD works as the channel partner for reimbursement of interest subsidy to banks, and a target of 3000 women weavers was fixed for the scheme year.
Highlights of Deen Dayal Upadhyaya Bunkar Yojana
| Detail | Information |
|---|---|
| Scheme Name | Deen Dayal Upadhyaya Bunkar Yojana |
| State | Arunachal Pradesh |
| Beneficiaries | Women weavers (individual or group) |
| Benefit | 7% interest subvention on short-term loans |
| Loan Cap | Up to ₹2.00 lakh working capital loan |
| Banks Covered | Commercial banks and regional rural banks |
| Nodal Department | Industries Department |
| Application Mode | Offline through Circle Officer |
Benefits
Women weavers who get this support can reduce their loan cost and improve their cash flow.
| Benefit | Details |
|---|---|
| Interest Subvention | 7% on short-term loans and working capital |
| Credit Types | Weavers Credit Card, Cash Credit, Working Capital Limits |
| Financial Cap | Up to ₹2.00 lakh |
| Scope | Open to all women weavers regardless of unit size or loom count |
The scheme runs alongside Pradhan Mantri Mudra Yojana, so weavers get small business loans from banks without needing collateral for credit up to ₹2.00 lakh. It also encourages timely repayment because the subsidy makes loans easier to manage.
Eligibility
Check who can apply under Deen Dayal Upadhyaya Bunkar Yojana:
- Women weavers whose main occupation is weaving are eligible to apply.
- The applicant must be in possession of at least one working loom.
- Groups of women weavers can apply together as a group.
- Companies and partnership firms cannot apply for this support.
Exclusions
The scheme is only for individual women weavers or groups of women weavers. Term loans and other loans from commercial banks, regional rural banks and cooperative banks are not covered. Loans taken before 01.04.2017 also do not get the interest subsidy.
Application Process
To apply for Deen Dayal Upadhyaya Bunkar Yojana, follow these steps:
STEP 1 - Get the application form from the official district website or the local government office.
STEP 2 - Fill in personal and business details, including the weaving activity and the loan amount required.
STEP 3 - Collect supporting documents, including proof of possession of a working loom and identity papers.
STEP 4 - Submit the completed form to the nearest designated bank branch or the local Circle Officer.
STEP 5 - Stay in touch with the bank to track the status of the application and the loan payment.
Documents
Keep these documents ready before applying:
- A completed application form.
- Valid identity proof such as Aadhaar card, voter ID or PAN card.
- Address proof like ration card, utility bill or driving licence.
- Certificate from the Circle Officer showing possession of a working loom or looms.
- Active bank account details.
- Any other documents asked by the bank during processing.
References
Visit the official source for more information on the Official Notification and download the Application Form PDF.
FAQ's
Can men apply for Deen Dayal Upadhyaya Bunkar Yojana?
No, this scheme is made only for women weavers.
Are companies and partnership firms eligible for this scheme?
No, the scheme covers only individual women weavers or groups of women weavers.
What is the maximum loan amount eligible for the interest subvention?
The interest subvention covers working capital loans up to ₹2.00 lakh.
Can I apply if I do not own a working loom?
No, proof of possession of a working loom is required. The Circle Officer certifies this while forwarding the application.
Is there any age limit to apply for this scheme?
No, there are no specific age restrictions for applicants.
How long does the loan payment take?
The loan amount is paid out after the bank approves the application. The timeline depends on the bank's internal processing speed.
Is collateral required to get this benefit?
No, collateral is not needed for credit up to ₹2.00 lakh.
Are loans from cooperative banks eligible for the interest subvention?
No, only loans taken from commercial banks and regional rural banks qualify for the 7% interest subvention.