Financing the working capital requirements of Weavers' Co-operative Societies (WCS) & State Handloom Development Corporations
Short-term Co-operative
Structure (State Co-operative Banks,
District Central Co-
operative Banks, Primary
Agricultural Credit Societies)
Short-term (crop and other loans)
Medium-term (conversion) loans
Term loans for investment purposes
Financing WCS for production and marketing purposes
Financing State Handloom Development Corporations for working capital by State
Co-operative Banks
Long-term Co-operative Structure
(State Co-operative
Agriculture and Rural
Development Banks,
Primary Co-operative
Agriculture and Rural
Development Banks)
Term loans for investment purposes
Pilot scheme for financing short term loans in three states
Regional Rural Banks (RRBs)
Short-term (crop and other loans)
Term loans for investment purposes
State Governments
Long-term loans for equity participation in
co-operatives
Rural Infrastructure Development Fund (RIDF) loans for infrastructure projects
Non-Governmental Organisations (NGOs) - Informal Credit Delivery System
Revolving Fund Assistance for various micro-credit delivery innovations and promotional projects under 'Credit and Financial Services Fund' (CFSF) and 'Rural Promotion Corpus Fund' (RPCF) respectively
Criteria for refinance
1.
Technical feasibility of the project and adequate response from prospective beneficiaries
2.
Financial viability and adequate incremental income to ultimate borrower to repay the loan within a reasonable period
3.
Organisational capability to ensure close supervision
The refinance is provided to SCARDBs, SCBs, CBs and RRBs. However, the beneficiaries of the programme are partnership concerns, companies, state-owned corporations or cooperative societies. But, finally the assistance reaches the individuals, who are members of the primary credit institutions.
The refinance is usually 50% to 95% of the project cost. The balance will be met by the banks and the concerned state governments or the Government of India in the case of SCARDBs. With a view to ensure credit flow to certain thrust areas, the quantum of refinance is enhanced to 100% as in the case of special category beneficiaries like SC/ST members and self help groups.
