Pradhan Mantri Credit Scheme for Powerloom Weavers

The Pradhan Mantri Credit Scheme for Powerloom Weavers is a sub-component of the broader PowerTex India scheme and further incorporated under the restructured Textile Cluster Development Scheme . Its purpose is to provide adequate and timely credit assistance to powerloom weavers both new and existing to meet investment (term‐loan) and working‐capital requirements, enhance competitiveness, productivity and formalise operations in the decentralised powerloom sector.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Two main components: PMMY and Stand Up India: Under the scheme, one stream is via the Pradhan Mantri Mudra Yojana for term loans/working capital up to around ₹10 lakh, and another via the Stand-Up India scheme for SC/ST/Women entrepreneurs for higher scale loans.
Margin‐money subsidy plus interest‐subvention support: For eligible weavers/units, the government provides margin money subsidy and interest subvention (e.g., 6% per annum for five years) to reduce cost of credit.
Eligibility covers both existing units and new enterprises, including SC/ST/Women entrepreneurs: Existing individual powerloom units or new individual/group enterprises are eligible under the PMMY part; new units by SC/ST/Women entrepreneurs (or 51% shareholding by them) are eligible under the Stand-Up India part.
Loan/credit facility for machinery/plant & working capital up to defined ceilings: The scheme defines terms such as up to ₹10 lakh for PMMY component; for Stand Up India, margin money support up to ₹25 lakh on machinery cost in certain cases.
Online portal and registration for scheme implementation: The scheme uses an online portal ‘iPowerTex’ for registration and application submission by weavers/units

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Margin‐money subsidy	20% of machinery cost, with ceiling of ₹ 1 lakh for borrower under PMMY component	Example: If a machine cost is ₹ 5 lakh, margin money subsidy ≈ 20% ⇒ ₹ 1 lakh
Interest subvention	Interest subvention at 6% per annum for 5 years on credit facility in PMMY part	Example: A loan for ₹ 10 lakh gets interest reduced by 6% per annum for first 5 years under scheme terms
Margin‐money subsidy	25% margin‐money subsidy on machinery cost, maximum subsidy up to ₹ 25 lakh for SC/ST/Women entrepreneurs	Example: Eligible new unit by a woman entrepreneur installs machinery costing ₹ 1 crore; 25% subsidy ⇒ ₹ 25 lakh maximum.

Eligibility Criteria

Who can apply:

Existing individual powerloom units new individual or group enterprises involved in weaving activity are eligible under the MUDRA component.
New powerloom units established by persons belonging to SC/ST or Women Entrepreneurs under the Stand Up India component. In case of non-individual units, at least 51% shareholding and controlling stake must be with the SC/ST or Women entrepreneur.

Who cannot apply:

Units that are not involved in the weaving activity or are outside the decentralized powerloom sector as defined.
Applications not following the approved credit routes may not be eligible for margin money subsidy or interest subvention.

Documents Required

Udyam Registration or MSME registration of the powerloom unit .
Project proposal/loan application: detailing the weaving activity, number of looms , machinery cost, working capital requirement.
Bank account, KYC of promoters, identity proof, address proof.
Ownership/shareholding documents .
Bank sanction letter or loan offer document .
Online registration/application on portal iPowerTex .
Any other documents requested by bank/office of Textile Commissioner as per guidelines .

Application Process for the Scheme

Option 1: Apply with Bullit

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: Powerloom units seeking low-cost credit and subsidy support.

Option 2: Government Process via Banks & PC Office

Identify your eligibility: whether you are applying under MUDRA component or under Stand Up India.
Prepare the loan proposal: include details of weaving activity, term loan/working capital need, project cost/machinery cost if applicable.
Submit the loan application through a participating bank/Lending Institution . Simultaneously the unit applies for margin money subsidy and interest subvention via the online portal for PowerTex/office of Textile Commissioner.
On sanction and disbursement of loan, margin money subsidy and interest subvention benefits get credited as per scheme guidelines.
The weaver/unit begins operations, repays loan; monitor compliance and ensure records of subsidy/benefit.

Option 3: Via State/Regional Powerloom Service Centre or Industry Association
Powerloom units may seek assistance from local Powerloom Service Centres , industry associations or textile clusters that can guide them on scheme eligibility, bank linkage, credit application and portal registration for subsidy.