AI SummaryScheme for Waiver of Loans to Handloom And Powerloom Sector is a dedicated scheme by the government of Andhra Pradesh to support weavers by providing debt redemption. This scheme helps eligible individual weavers, weaver groups, and powerloom units by clearing their outstanding loan burdens held with commercial and cooperative banks, so they can get financial stability and new growth opportunities.
Scheme has been closed or it was a one time scheme which has been closed by the government.
Scheme for Waiver of Loans to Handloom And Powerloom Sector - Introduction
Scheme for Waiver of Loans to Handloom And Powerloom Sector was launched by the Industries and Commerce Department of the government of Andhra Pradesh. This scheme was made to relieve the heavy debt burden carried by hardworking weavers, farmers, and Self-Help Groups (SHGs). By working with Scheduled Commercial Banks, Cooperative Banks, Urban Cooperative Banks, and Regional Rural Banks (RRBs), it helped with the redemption of outstanding loans.
Beyond just debt relief, this scheme opened the way for a better future by encouraging improved livelihood opportunities. It specifically provided relief to the following categories:
- Individual weaver loans.
- Weaver group loans.
- Loans for powerloom units that operate with below 5 HP power connections and currently avail the 50% power subsidy.
Key Information
| Key | Details |
|---|---|
| Scheme Name | Scheme for Waiver of Loans to Handloom And Powerloom Sector |
| Level | State |
| Beneficiary State | Andhra Pradesh |
| Nodal Department | Department of Industries and Commerce |
| Implementing Agencies | Scheduled Commercial Banks, Cooperative Banks, Urban Cooperative Banks, and RRBs |
| Target Beneficiaries | Individual weavers, Weaver groups, Powerloom units |
Benefits
This scheme offered significant financial relief to the weaving community by clearing qualifying debts. Below is a breakdown of the maximum waiver limits provided to beneficiaries:
| Category | Maximum Redemption Limit |
|---|---|
| Individual Weaver | ₹ 1,00,000 |
| Weaver Group | ₹ 5,00,000 |
For example, if Ramesh, an individual weaver, has an outstanding loan of ₹ 80,000, the entire amount will be covered. Similarly, if a weaver group has a collective loan of ₹ 6,00,000, the scheme will clear up to ₹ 5,00,000, while making sure individual member redemption does not exceed ₹ 1,00,000 per person.
Also, once your loan is redeemed, you become eligible for fresh finance from lending institutions to restart or expand your business.
Eligibility
To qualify for this debt relief, you must meet specific conditions set by the government:
- Your loan must have been taken specifically for weaving purposes and remained outstanding as of 31.03.2014.
- The combined loan amount from all banks must not exceed the specified individual ceiling.
- You must belong to one of the eligible categories, which include individual weavers who took loans directly for weaving, weaver groups that took loans for weaving activities (calculated on a pro-rata basis), holders of valid Weaver Credit Cards, and owners of powerloom units with less than 5 HP capacity that currently receive the 50% state power subsidy.
Exclusions
To make sure benefits are shared fairly, this scheme prohibits double benefits. If a member of a weaver group has already claimed debt redemption under other government schemes like DWACRA or MEPMA for the same purpose, that specific member cannot claim the waiver again under this scheme.
Application Process
The process was designed to be clear and was managed through the following steps:
STEP 1 - Identification of Beneficiaries: The Assistant Director (Handlooms and Textiles) collects the list of possible beneficiaries directly from the banks. This list is then reviewed by the District Level Committee (DLC) with approval from the District Collector.
STEP 2 - Scrutiny: The DLC verifies the genuineness of all claims within 7 days of receiving the data from bank officials.
STEP 3 - Fund Disbursal: Once approved, the Commissioner of Handlooms and Textiles releases the funds directly to the concerned bank account from a central government account.
STEP 4 - Account Updates: Your loan passbook or weaver credit card will be updated with the details of the redeemed amount.
STEP 5 - Complaint Help: If you feel your name was missed or the calculation is incorrect, submit a representation to your bank branch or the dedicated Grievance Redressing Officer. These issues should be resolved within 30 days.
Documents
Please keep the following documents ready for your application process:
- Proof of address (Domicile or Residential Certificate)
- Income certificate
- Aadhar Card
- Recent passport-sized photograph
- Official loan statement
- Relevant land documents (if applicable)
- Original sanction letter issued by your bank
- Detailed bank account information
References
Official website of Department of Handlooms and Textiles, Andhra Pradesh
FAQ's
When Were The Scheme Guidelines First Issued?
The government order containing the guidelines was released on 1st January 2016.
What Are The Primary Objectives of This Scheme?
This scheme focused on redeeming the debts of weavers, farmers, and SHGs in Andhra Pradesh to promote their prosperity and provide more sustainable livelihood opportunities.
Are RRBs Included in This Scheme?
Yes, loans from Scheduled Commercial Banks, Cooperative Banks, Urban Cooperative Banks, and RRBs within Andhra Pradesh were covered.
Are Loans from Banks Outside Andhra Pradesh Eligible?
No, this scheme was strictly for loans taken from bank branches located within the state of Andhra Pradesh.
How Is The Benefit Distributed for Groups?
The payment was made to the group account, and the group members distributed the funds among themselves in the agreed-upon proportion.
Are There Any Income Or Age Restrictions?
No, there were no specific income or age-related criteria to apply for this scheme.
Is This A Centrally Sponsored Scheme?
No, this was a 100% state-sponsored scheme by the government of Andhra Pradesh.