Srinagar, October 8, 2026- Artisans and weavers across Kashmir are receiving a fresh boost of working capital, with the Handicrafts and Handloom Department extending loans worth ₹14.71 crore under its flagship Credit Card Scheme in the first two quarters of the current financial year.
The scheme, which provides formal credit to craftspeople for setting up independent units and meeting their production needs, has become a key instrument for the department in supporting a sector that remains heavily labour-intensive.
Applications, Sanctions and Disbursals
According to the department, 3,885 applications were sponsored to banks during the period. Of these, 1,332 have been sanctioned and 1,054 had been disbursed by the end of September 2026.
In a press release issued here, a spokesman of the department said it is working with lead banks and other financial institutions to widen access to the facility.
“The funds are meant to help craftspeople set up independent units and buy raw material and tools in a sector that remains heavily labour-intensive,” he said.
Interest Subvention for New Units
Beneficiaries of the scheme also receive an interest subvention of 7 percent on a tapering basis for five years. The spokesman said the provision is designed to help newly established units become self-sustaining, easing the financial pressure that often accompanies the early years of a small enterprise.
The credit limit under the scheme was raised from ₹1 lakh to ₹2 lakh in 2020, in line with the Wool Processing, Handloom and Handicrafts Policy. The spokesman said the enhanced limit has led to wider uptake among craftspeople.
“Since the credit limit was raised from ₹1 lakh to ₹2 lakh in 2020, in line with the Wool Processing, Handloom and Handicrafts Policy, more than 10,000 craftsmen have taken loans totalling ₹151 crore,” he said.
Over the same period, the department has provided interest subvention of ₹19 crore to support these unit-holders, he added.
Reducing Dependence on Informal Credit
The scheme is aimed at reducing the dependence of artisans on informal credit and giving traditional crafts a more stable financial footing. By easing access to formal loans for tools, raw material and small production units, the department hopes to help artisans and weavers expand output, retain younger craftspeople in the trade and strengthen Kashmir’s handloom and handicraft economy.
Handloom and handicrafts form an important part of Kashmir’s cultural identity and sustain a large number of households across the Valley. Access to timely and affordable credit is therefore central to keeping these traditional occupations viable for the next generation.
Key Figures at a Glance
- Loans extended in Q1 and Q2 of the current financial year: ₹14.71 crore
- Applications sponsored to banks: 3,885
- Applications sanctioned: 1,332
- Applications disbursed by end of September 2026: 1,054
- Interest subvention: 7 percent on a tapering basis for five years
- Credit limit: ₹2 lakh, raised from ₹1 lakh in 2020
- Loans since 2020: ₹151 crore to more than 10,000 craftsmen
- Interest subvention provided since 2020: ₹19 crore
How to Apply
Artisans and weavers can apply online at singlewindow.jk.gov.in to avail the benefits of the scheme. Common Service Centres set up across districts are available to assist applicants with registration, which will help those who need support with the online process.
Appeal to Financial Institutions
The spokesman urged financial institutions and lead banks to treat the craft sector as a priority lending area and to extend timely, hassle-free credit, so that small unit-holders can build a stronger and more self-reliant base.
With the department continuing to coordinate with banks and widen access, the scheme is expected to remain a major source of support for Kashmir’s craftspeople in the months ahead.
