BOB Weaver Mudra Scheme

Purpose

• The scheme aims at providing adequate and timely assistance from the bank to the weavers to meet their credit requirement i.e. for investment needs as well as for working capital in a flexible and cost effective manner. The scheme will be implemented both in rural and urban areas.

Eligibility

• Existing or experienced handloom weavers involved in weaving activity.

Purpose

• Purchase of looms and related CAPEX and need based WC requirement.

Facility

• Demand loan and working capital finance.

Maximum Limit

• Rs. 5 lakhs (Inclusive of demand loan and W.C. finance)

Margin

• 20% of total project cost (capital expenditure and W.C)
• Margin up to Rs.10,000 or 20% whichever is less shall be provided by GOI

Assessment of Limits

• Demand loan: 80% of the cost of looms and other capital expenditure
• Working Capital limit: Bank finance will be 20% of estimated/projected turnover less margin

Subsidy to be provided by Government

• Interest subsidy: To provide working capital loans at the interest rate of 6% to handloom sector; the quantum of interest subsidy to be borne by the Government of India will be limited to the difference between the actual rate of interest as applicable/charged by the banks and 6% interest to be borne by the borrower. The maximum interest subsidy would be capped at 7%.
• Margin money assistance: at 20% of the project cost subject to a maximum of Rs.10,000 per weaver will be provided.

Securities

• Exclusive hypothecation charge on machinery and stock.
• Credit guarantee from CGTMSE.

Issuance of Mudra Card

• The beneficiaries under the Scheme will be issued a Mudra Card having the daily withdrawal limit of Rs. 5000 per day.

• ROI as per the prevailing rate applicable to MSME segment as under.
• Competitive rate as per MCLR.
• Interest subsidy to be claimed from GOI: Difference amount i.e. 4.35% at present subject to change in MCLR shall be calculated and adjusted in the account on a quarterly basis. (Please note that interest subsidy will be available only up to 3 years from the date of the first disbursement)
• "ROI as per prevailing rate applicable to MSME segment competitive rate as per BRLLR Interest subsidy to be claimed from GOI. (Please note that interest subsidy will be available only up to 3 years from the date of the first disbursement)”

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