PNB loans for weavers scheme! Get up to Rs 5 lakh under PNBWMS

India’s second largest public sector bank – Punjab National Bank (PNB) today launched PNB Weaver Mudra Scheme (PNBWMS) for weavers which will provide loans up to Rs 2 lakh, the bank said in its media release. The scheme was launched on the occasion of National Handloom Day and is in accordance with the scheme of Ministry of Textiles, it said. 

PNBWMS was launched after the textile ministry expressed the need for establishing systems for providing working capital loans to weavers under SHISHU and KISHORE categories. While the former caters to loans up to Rs 50,000, the later provides loans between Rs 50000 and Rs 500,000. 

This product has been prepared after detailed discussions with the Ministry of Textile, the release said. This new product seeks to finance working capital needs “specifically” of weavers. The Government of India has agreed to extend financial assistance in respect of margin money subsidy, interest subsidy and credit guarantee fees, the release said.

The scheme aims to provide adequate and timely assistance to weavers by way of Cash Credit or loan in both rural and urban areas. As per the Margin conditions, the Government of India will bear a margin at 20 per cent of the cost of the project (Working Capital) with a maximum of Rs 10,000 while the rest of the amount will have to be borne by the borrower. Margin money subsidy will be credited to the account of the borrower after sanctioning of the loan, the release said. 

Eligibility norms:   

1. All existing Handloom Weavers – with identity cards issued by the DC (Handlooms), health card issued as a part of Health Insurance Scheme and certificate or identity cards issued by the State governments - can avail the scheme.  

2. Applicants must not be a defaulter of any bank and must have a satisfactory report from CIBIL.

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All applications will be evaluated under the “PNB SCORE SME MODEL” for loans above Rs 2 Lakh and up to Rs 5 lakh. As per extant guidelines, loans up to Rs 2 Lakh are exempted from scoring.