The maximum credit limit to be sanctioned under the scheme would, however, be fixed at ₹ 2,00,000.

The credit limit would be fixed, based on the assessment of composite term loan requirements as well as cost of tools and equipments required for carrying out the making/ manufacturing process.

The credit limit could normally be valid for a period of five years subject to annual review by the bank.

For the purpose of annual review, the borrower may not be required to submit any financial statement.

Based on assessment of performance during inspection by field staff and operations in the account, the review exercise may be carried out annually and a decision on continuation or otherwise of the limit sanctioned, below the cap of ₹ 1,80,000 may be taken. Need for enhancement in the limit sanctioned may also be considered as part of the review.

No fee will be charged for review/ renewal of the limit.

For the purpose of this scheme, the rate of interest on the loan would be as per RBI norms/ Bank policy.

The Handicrafts & Handloom Department shall monitor and track the implementation of the new scheme and put on notice those beneficiaries who fail to pay their monthly instalments on time, in coordination with the financial institutions.

The annual target fixed under the Scheme shall be 5000 (4000 Artisans and 1000 Weavers) in Handicrafts and Handloom Department, Jammu/Kashmir.