Deen Dayal Disabled Rehabilitation Scheme 2026

This scheme helps the handloom sector get timely and affordable loans for their business needs, supporting both Read More... working capital and term loans. Read less

Details

The handloom sector is a vital part of India's cultural heritage and economy. To support our talented weavers, the Ministry of Textiles, Government of India, has introduced the National Handloom Development Programme, which includes the Concessional Credit/Weaver MUDRA Scheme. This initiative aims to ensure that handloom weavers and organizations can easily access the financial support they need to grow their businesses.

What is the National Handloom Development Programme: Concessional Credit/Weaver MUDRA Scheme?

This scheme is designed to provide financial assistance to the handloom sector. It works by making it easier for banks and financial institutions to offer loans to handloom weavers and their organizations. The goal is to give them flexible, cost-effective access to credit for both their day-to-day operational costs (working capital) and for longer-term investments (term loans).

Who Can Benefit from this Scheme?

The scheme is primarily for individuals and groups involved in handloom weaving. This includes individual weavers, weaver entrepreneurs, self-help groups (SHGs), joint liability groups (JLGs), and various types of handloom organizations like co-operative societies and state handloom corporations. Even producers' companies and consortia formed by weavers can benefit.

Why this Scheme is Important

Access to credit is often a major challenge for small businesses and artisans. This scheme addresses that by offering concessional interest rates, margin money assistance, and credit guarantees. These benefits help reduce the financial burden on weavers, encouraging them to invest in better equipment, raw materials, and business expansion, ultimately leading to greater economic stability and the preservation of traditional handloom crafts.

Objective

This scheme helps the handloom sector get timely and affordable loans for their business needs, supporting both working capital and term loans.

Benefits

The Deen Dayal Disabled Rehabilitation Scheme (DDRS) provides a wide range of benefits to persons with disabilities, including:

Early intervention: The DDRS provides financial assistance to voluntary organizations for early intervention programs for children with disabilities. These programs help to identify and address developmental delays early on, which can improve the child's long-term outcomes.

Development of daily living skills: The DDRS provides financial assistance to voluntary organizations for programs that help persons with disabilities to develop the skills they need to live independently. These programs may include training in activities such as cooking, cleaning, and personal care.

Education: The DDRS provides financial assistance to voluntary organizations for educational programs for children and adults with disabilities. These programs may include mainstream education, special education, and vocational training.

Skill development oriented towards employability:The DDRS provides financial assistance to voluntary organizations for skill development programs that help persons with disabilities to find employment. These programs may include training in computer skills, office skills, and trade skills.

Training and awareness generation:The DDRS provides financial assistance to voluntary organizations for training programs for staff and caregivers of persons with disabilities. These programs help to build capacity and raise awareness about disability issues.

Construction and upgradation of infrastructure facilities for persons with disabilities: The DDRS provides financial assistance to voluntary organizations for the construction and upgradation of infrastructure facilities for persons with disabilities. This may include ramps, accessible toilets, and specialized equipment.

In addition to these direct benefits, the DDRS also helps to promote the empowerment of persons with disabilities by supporting voluntary organizations that work to advocate for their rightsThe following are the 9 Model Projects :-

Pre-School, Early Intervention and Training Special Schools for:-

Children with Intellectual Disabilities
Children with Hearing & Speech Disabilities
Children with Visual Disabilities

Project for Cerebral Palsied Children

Project for Rehabilitation of Leprosy Cured Persons

Half Way Home for Psycho-Social Rehabilitation of Treated and Controlled people with mental Illness

Home Based Rehabilitation Programme/Home Management Programme

Project for Community Based Rehabilitation

Project for Low Vision Centers

Projects for Human Resource Development

Sources and references

Guidelines

Who Can Apply?

The following groups and individuals can apply for loans under this scheme:

Handloom weavers actively involved in weaving.
Weaver entrepreneurs.
Self Help Groups (SHGs).
Joint Liability Groups (JLGs).
Handloom organizations, including:

Primary Handloom Weavers’ Co-operative Societies.
Apex Handloom Weavers’ Co-operative Societies.
State Handloom Corporations.

Producers' Companies or Consortia promoted by handloom weavers, including those supported under schemes like SITP or other Ministry of Textiles initiatives.

Important Conditions:

If you've already received margin money assistance as an individual, you cannot get further financial help for margin money, interest subsidy, or credit guarantee fees through a Handloom Organization, SHG, etc.
Fresh loans can be approved after repaying a previous loan for at least one year. While all beneficiaries can get margin money, interest subsidy and credit guarantee fees are only for Handloom Organizations.

How to Apply

To avail loan benefits under this scheme, eligible individuals and organizations need to:

Approach a Participating Bank or Financial Institution. These include Scheduled Commercial Banks, Regional Rural Banks, State Cooperative Banks, District Central Cooperative Banks, and any other approved financial institution.
Submit all the required documents along with your loan application.

The list of participating banks is available with the Ministry of Textiles. For specific application links or branch details, please refer to the official website of the Ministry of Textiles or the websites of the participating banks.

Documents You'll Need

When applying for a loan under this scheme, be prepared to submit the following documents:

Identity card issued by the Office of the Development Commissioner (Handlooms).
Yarn passbook.
Identity card issued by the State Government.
For Handloom Organizations:

Registration Certificate.
Balance Sheet.
Profit & Loss Account statements.
List of registered weavers with the organization.

Official Sources

For the most accurate and up-to-date information, always refer to the official websites:

Ministry of Textiles, Government of India

FAQ’s

What is the main goal of the Concessional Credit/Weaver MUDRA Scheme?

The primary aim of this scheme is to ensure that the handloom sector has easy and timely access to funds from banks. It helps meet their credit needs for both term loans and working capital in a way that is flexible and doesn't cost too much.

Can I get a loan if I've taken a loan under this scheme before?

Yes, if you've repaid a previous MUDRA loan, you may be eligible for a fresh loan after one year. Margin money will be available to all beneficiaries, but interest subsidy and credit guarantee fees are specifically for Handloom Organizations.

What kind of financial institutions can provide loans under this scheme?

All Scheduled Commercial Banks, Regional Rural Banks, State Cooperative Banks, District Central Cooperative Banks, and any other financial institution approved by the Ministry of Textiles, Government of India, can participate.

How much margin money assistance can an individual weaver get?

An individual handloom weaver or weaver entrepreneur can receive margin money assistance equivalent to 20% of their loan amount, with a maximum limit of ₹25,000.

What happens if a handloom organization needs more margin money than the scheme provides?

If the bank's normal guidelines require more margin money than what the scheme offers, the beneficiary organization will have to cover the additional amount themselves.

For how long does the interest subsidy last?

Eligible handloom organizations can benefit from the interest subvention for a maximum of three years, starting from the date the loan was first disbursed.

Who bears the cost of the credit guarantee fee?

The Government of India covers the credit guarantee fee for the loan amount disbursed to eligible handloom organizations for a period of three years.

If I am an individual weaver and have already received margin money assistance, can I still apply through a weaver cooperative society?

No, if you have already received margin money assistance as an individual, you are not eligible for further financial assistance like margin money, interest subsidy, or credit guarantee fees through a Handloom Organization or SHG.

What is the maximum loan amount that qualifies for MUDRA coverage?

Loans up to ₹10.00 lakhs are covered under the MUDRA component of the scheme. Loans exceeding this amount are covered under the Concessional Credit category.

How is the margin money assistance for handloom organizations calculated?

For handloom organizations, margin money assistance is provided on a pro-rata basis. It's calculated as the lower of ₹2.00 lakhs for every 100 weavers/workers or 20% of the loan amount, with a maximum limit of ₹20.00 lakhs.

Where does the money for margin money assistance go for a handloom organization?

The margin money assistance will be directly transferred to the loan account of the Handloom Organization.

How can I apply for a loan under this scheme?

You need to approach a participating bank or financial institution and submit your loan application along with all the necessary documents as per their requirements.

Does the scheme offer any support for interest costs?

Yes, eligible handloom organizations can avail subsidized loans at a concessional interest rate of 6% for three years. The Government of India provides an interest subvention of up to 7% to support this.

What does the credit guarantee cover?

The credit guarantee protects the bank or financial institution that has lent money to eligible handloom organizations. This cover is provided by agencies like NCGTC or CGTMSE and is effective for 3 years from the loan disbursement date.