NEW DELHI, MAR. 15
The Minister of State for Finance, Mr. Namo Narain Meena, in written reply to a question in the Lok Sabha today updated the members on loans to Indian textile industry. He informed that Reserve Bank of India has de-regulated the interest rates.
With effect from 1st July, 2010, Banks are required to price their loan products linked with the base rate as approved by their respective Boards. Banks are not permitted to resort to any lending below the Base rate.
However, Govt. of India is providing the credit related interventions like (i) issuance of weavers’ credit card; (ii) interest subvention @ 3% for 3 years on fresh loans sanctioned; (iii) margin money assistance @ Rs. 4200 per handloom weaver and (iv) credit guarantee for 3 years. For ensuring the availability of subsidized yarn, the Government of India is providing 10% price subsidy on domestic silk and cotton hand yarn to handloom weavers.
Ministry of Textiles under Technology Upgradation Fund Scheme (TUFS) provides assistance to power loom and handloom sectors for modernization and upgradation of the textile industry by providing credit at reduced rates to the entrepreneurs both in the organized and the unorganized sector in the textiles industry. In the Budget speech 2013-14 Finance Minister has announced to provide handloom weavers working capital and term loans at a concessional interest of 6%, by providing interest subvention, he informed.
(Source: Tecoya Trend)