Nature of facility	Term Laon Working Capital
Purpose	The scheme aims to provide adequate and timely assistance from the banks to Handloom sector to meet their credit requirements for term loan & working capital in a flexible and cost-effective manner across the country.
Quantum	For Individual Handloom Weaver/ Handloom entrepreneur/SHG/JLG: Max. exposure up to Rs. 2,00,000/- per borrower entity under the scheme. For Handloom Organization/ Handloom producer companies/ SPV or consortia promoted by Handloom weavers in mega cluster/ Handloom parks, etc. : Max. exposure up to Rs. 10,00,000/- per borrower entity under the scheme
CGTMSE Coverage	The loans extended to eligible Handloom organizations will be guaranteed by the Guarantee coverage from CGTMSE/CGFMU as applicable, in eligible cases. Entire credit guarantees fees would be borne by GOI for a maximum period of 3 years. Credit guarantee, which will be effective from the date of disbursement of loan, would be covered on loan amount upto Rs. 10.00 lakhs for a period of 3 years.
Margin	Minimum 20% for WC/TL facilities. Note: - Margin to be brought in by the Borrower upfront and it will be reimbursed once it is received from the Government. Amount of margin money which is over and above the assistance provided by the Government will be borne by the Borrower
Margin Money Assistance	Individual Handloom Weaver/Weaver Entrepreneur: Margin Money assistance @20% of loan amount, subject to maximum of Rs. 25,000/-. Handloom organization: Margin money assistance @20% of loan amount (subject to maximum of Rs. 2,00,000).
Repayment	Working Capital: Working Capital Loan valid for 1 year subject to annual renewal. Term Loan: Maximum repayment period 36 months inclusive of initial repayment holiday of 3 months maximum, depending upon requirement of individual project. Interest to be serviced during the moratorium period as and when due. Maximum financial assistance from Government will be available for 3 years only.
Security	Primary Security: Assets created out of Bank Finance. Collateral Security: For loans up to Rs. 10 lakhs: No collateral security to be obtained. However, loans shall invariably be covered under CGFMU/CGTMSE, as applicable. Guarantee fee will be borne by Government for 3 years.

Individual Handloom Weavers / Weaver Entrepreneurs
Self Help Groups
Joint Liability Groups
Handloom organization, including Primary Handloom Weavers' Cooperative Societies, Apex Handloom Weavers Co-operative Societies, State Handloom Corporations
Special Purpose Vehicle (SPV)/ consortia promoted by handloom weavers in Mega Cluster/Handloom Parks etc.
Handloom Producer Companies

Other criteria:
a. The applicant should not be defaulter of any bank.

b. Prospective borrower should be handloom weaver at the time of taking loan. The borrower is a weaver, can be ascertained from any one of the following:
- Weaver' Identity card issued by the Office of DC (Handlooms)
- Yarn passbook
- Identity card issued by the State Government.
- Handloom Organizations – Registration Certificate, Balance Sheet, Profit & Loss Account, name of the weavers registered with Organization etc.

Customer Identification proof along with NF998 MSME application.
Address Proof of unit and promoters.
License/permissions.
Financial papers for the last 3 years with ITR and projections.
Details of Guarantor with proof of assets.
Stock Statement

Rate of interest as per prevailing guidelines of the Bank linked to RLLR of the Bank, subject to changes from time to time.

Subsidized loans at concessional interest rate of 6% for a period of 3 years, from the date of first disbursal, will be available to eligible handloom organizations only. However, this is subject to interest subvention cap only upto 7% by the GoI.

Penal interest of 0.25%/0.50% may be chargeable as the case may be, from previous sanction to current renewal period, in case of lesser turnover routed through the account.
Agree to pay penal interest at 2% for overdrawn portion, in case of delayed regularization of the limit.