SRINAGAR: The Handicrafts and Handloom Department has extended loans worth Rs 14.71 crore to artisans and weavers in Kashmir under its Credit Card Scheme during the first two quarters of the current financial year, with 1,054 applicants having received funds by the end of September 2026.
According to a press release issued by the department, 3,885 loan applications were sponsored to banks during the period. Of these, 1,332 were sanctioned and 1,054 were disbursed.
The department said it was coordinating with lead banks and other financial institutions to improve access to institutional credit for craftspeople. The loans are intended to help artisans establish independent production units and purchase raw materials, tools and other requirements for their work.
Beneficiaries are also eligible for interest subvention of 7 per cent on a tapering basis for five years. The support is intended to reduce the financial burden on new units and assist them in becoming self-sustaining.
The department said the credit limit under the scheme was increased from Rs 1 lakh to Rs 2 lakh in 2020 in accordance with the Wool Processing, Handloom and Handicrafts Policy. Since then, more than 10,000 craftsmen have availed themselves of loans amounting to Rs 151 crore.
During the same period, the government has provided Rs 19 crore in interest subvention to support the beneficiaries, the spokesman said.
The scheme is intended to reduce artisans’ reliance on informal sources of finance by facilitating access to formal credit for tools, raw materials and small-scale production units. The department said improved financing could also support expansion of production and help sustain traditional crafts by encouraging younger people to remain in the sector.
Artisans and weavers can submit applications online through singlewindow.jk.gov.in. Common Service Centres operating across the districts are also available to assist applicants with registration.
The department has urged lead banks and other financial institutions to treat the craft sector under priority lending and ensure timely and hassle-free credit to small unit-holders.
The initiative is part of efforts to strengthen the financial base of Kashmir’s handicraft and handloom sector and support traditional livelihoods through greater access to institutional finance.
