HANDLOOM PRODUCER COMPANIES
Issued by Ministry of Textiles
Read or download the official PDF of this gazette notification issued by the Ministry of Textiles on 11th August 2026. Classified under Press Release.
Executive Summary & Key Takeaways
Executive Summary This report outlines the financial support and institutional mechanisms provided to the handloom sector under the National Handloom Development Programme (NHDP). It details the formation of 237 Handloom Producer Companies and the implementation of the Concessional Credit/Weaver MUDRA Scheme to provide margin money and interest subventions. Detailed state-wise performance data for infrastructure upgrades and loan sanctions is provided through June 30, 2026.
Key Points / Main Content
Institutional and Infrastructure Support
- Handloom Producer Companies (HPCs): The government promotes HPCs as member-owned enterprises to professionally manage weavers; 237 companies were formed between 2020-21 and 2025-26.
- Infrastructure Interventions: Financial assistance is provided for upgraded looms, accessories, workshed construction, and lighting units.
- National Totals (2021-22 to 2025-26): A total of 39,251 upgraded looms/accessories, 4,919 individual worksheds, and 4,899 lighting units have been distributed across India.
Concessional Credit/Weaver MUDRA Scheme
- Purpose: To provide flexible and cost-effective assistance for term loans and working capital through banks and financial institutions.
- Margin Money Assistance: Provided at 20% of the loan amount, capped at Rs. 25,000 for individual weavers and Rs. 20.00 lakh for handloom organizations (calculated at Rs. 2.00 lakh per 100 workers).
- Interest and Guarantees: Handloom organizations are eligible for a concessional interest rate of 6% for three years, with a government interest subvention capped at 7%. Credit guarantee fees are also covered for organizations for three years.
Disbursement and Application Process
- Digital Portal: The "Handloom Weaver Mudra Portal," developed with Punjab National Bank, serves as a centralized online system for the timely disbursement of subsidies and margin money.
- Direct Benefits: Margin money is transferred directly to the beneficiary's loan account, while interest subsidies are sent to the concerned banks via the portal.
- Verification: Participating banks are responsible for verifying the eligibility of applicants and processing the submitted documentation.
Impact Analysis
Individual Handloom Weavers and Entrepreneurs Impact They receive direct financial relief through 20% margin money assistance and improved productivity via upgraded equipment and worksheds. Action Required Eligible weavers must approach participating banks with a completed application and the necessary supporting documentation for eligibility satisfaction.
Handloom Organizations / Producer Companies Impact These entities benefit from significantly higher credit limits (up to Rs. 20 lakh), reduced interest rates (6%), and government-funded credit guarantees. Action Required Organizations must maintain professional management standards to function as member-owned enterprises and utilize the Mudra Portal for claim disbursements.
Participating Banks (including Punjab National Bank) Impact Banks act as the primary facilitators for the scheme, utilizing a centralized digital system to manage claims and disbursements. Action Required Banks must assess the eligibility of applicants, process loan sanctions, and coordinate with the online portal to ensure the accurate transfer of subsidies and margin money.