J&K Artisans, Weavers Receive Rs 14.71 Crore in Loans in First Half of FY27

According to the Handicrafts and Handloom Department, 3,885 loan applications were sponsored to banks during the period. By the end of September 2026, 1,332 applications had been sanctioned and 1,054 loans had been disbursed.

The department said it was working with lead banks and other financial institutions to expand access to formal credit for people engaged in traditional crafts.

"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," a department spokesperson said.

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 help them become self-sustaining.

The department said that since the credit limit under the scheme was increased from Rs 1 lakh to Rs 2 lakh in 2020 in line with the Wool Processing, Handloom and Handicrafts Policy, more than 10,000 artisans have availed themselves of loans totalling Rs 151 crore.

During the same period, the government provided Rs 19 crore in interest subvention to support the beneficiaries, the department said.

The scheme is aimed at reducing artisans' dependence on informal sources of credit while providing traditional craft businesses with more stable access to finance. Easier access to loans for tools, raw materials and small production units is also expected to help artisans increase output, encourage younger people to remain in the sector and strengthen Jammu and Kashmir's handloom and handicraft economy.

Artisans and weavers can apply online through the single-window portal to access the scheme's benefits. Common Service Centres operating across districts are also available to assist applicants with registration.

The department has urged financial institutions and lead banks to treat the handicrafts and handloom sector as a priority lending area and provide timely and hassle-free credit to small unit holders.

It said improved access to formal finance would help artisans build more sustainable and self-reliant businesses while supporting the traditional craft economy of the region.