National Handloom Development Programme NHDP (Handloom)
The central handloom programme that gives weavers margin money on bank loans, worksheds and better looms through clusters, marketing fairs, insurance and scholarships.
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- Cost to apply
- Free
- Status
- Open
- Run by
- Office of the Development Commissioner (Handlooms), Ministry of Textiles
What you get
- Margin money of 20% of the loan, up to ₹25,000, for individual weavers and weaver entrepreneurs, under the April 2023 guidelines
- Bank loans up to ₹10 lakh come under Weaver MUDRA and larger ones under concessional credit
- Handloom organisations get loans at 6% interest for three years, with the government paying interest subvention of up to 7% and the credit guarantee fee
- Small cluster projects of up to ₹2 crore for better looms, lighting, worksheds, design and marketing, with up to 100% subsidy for worksheds
- Handloom expos, craft melas and other events where weavers sell directly
- PMJJBY life cover for weavers aged 18 to 50 and PMSBY accident cover for those aged 18 to 70
- Scholarships of up to ₹2 lakh a year for two children of a weaver in recognised textile courses
- The Raw Material Supply Scheme, run alongside, pays freight on yarn and a 15% price subsidy on specified yarns within quantity limits
Who can apply
- Open to businesses in handicrafts.
- Nano, micro and small enterprises.
- Only for artisans.
- For handloom weavers and allied workers, weaver entrepreneurs and handloom organisations
- Weavers counted in the handloom census hold Pehchan cards. New workers can apply on the e-Pehchan portal launched in January 2025.
- Margin money claims go through the Handloom Weaver MUDRA Portal run with Punjab National Bank
How to apply
- Get a Pehchan or e-Pehchan card as a handloom worker
- For a loan, apply at a participating bank under Weaver MUDRA
- The bank claims the margin money through the Handloom Weaver MUDRA Portal
- For looms, worksheds or fairs, apply through your cooperative society or cluster
In person, Participating bank branch for Weaver MUDRA loans. Handloom cooperative society or state handloom corporation for other support.
In Kerala, Weaver MUDRA and concessional loans through participating banks in Kerala. Cluster, marketing and welfare support through handloom cooperative societies, state handloom corporations and Handloom Producer Companies.
Figures you may see elsewhere
The 2023 guidelines say only handloom organisations get the 6% interest loans and credit guarantee, while individuals get margin money. The August 2026 PIB backgrounder describes the 6% loans without saying who qualifies. The guidelines are shown.
Worth knowing
NHDP was set for 2021-22 to 2025-26. A PIB backgrounder of August 2026 says NHDP and the Raw Material Supply Scheme continue in 2026-27 with ₹205 crore and ₹200 crore. Budget 2026-27 announced a National Handloom and Handicraft Programme that will bring existing schemes together, with details not yet published.
Where we found this
An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.