Scheme For Waiver Of Loans To Handloom And Powerloom Sector Andhra Pradesh
Scheme for Waiver of Loans to Handloom and Powerloom Sector is a Government of Andhra Pradesh initiative implemented through the Department of Handlooms & Textiles, launched to provide financial relief to distressed weavers and powerloom units.
The scheme aims to waive outstanding institutional loans of handloom and powerloom weavers, reduce debt burden, revive traditional industries, and improve livelihood conditions. For you as an MSME or weaver, this scheme helps restore financial stability and enables you to restart or sustain your business operations.
Key Features
- Loan waiver support: The scheme provides waiver of outstanding loan amounts, reducing financial liabilities for weavers and MSMEs.
- Targeted at weavers: Focused on handloom and powerloom sector, ensuring benefits reach traditional textile workers.
- Financial relief for distressed units: Helps units facing repayment issues to recover and continue operations.
- Support through cooperative institutions: Covers loans taken from cooperative banks, societies, and eligible financial institutions.
- Revival of traditional sector: Aims to strengthen the handloom sector which is a key part of rural economy.
- Direct benefit approach: Loan waiver is directly adjusted with lending institutions, reducing burden on beneficiaries.
Financial Assistance
Eligibility Criteria
- Must be a handloom or powerloom weaver / MSME unit
- Must be located in Andhra Pradesh
- Must have availed loan from eligible institutions (cooperative banks/societies)
- Loan must be outstanding within specified cut-off period
Additional conditions:
- Must be registered under relevant handloom/powerloom department
- Loan account must be active/eligible as per scheme guidelines
Non-eligibility conditions:
- Loans from private/unrecognised lenders
- Ineligible or non-performing accounts beyond defined norms
Documents Required
- Aadhaar Card
- Weaver / MSME registration certificate
- Loan account statement
- Bank / cooperative society details
- Income proof (if required)
Application Process
Option 1: Apply with Bullit, Recommended
Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.
Option 2 : Apply Online (Government Process)
- Register on Andhra Pradesh Handloom / Textile Portal
- Fill loan waiver application form
- Enter loan account details
- Upload required documents
- Submit application
- Verification by Department and financial institution
- Approval of loan waiver
- Adjustment of loan amount with lender
- Track application status online