NABARD - Student Internship Scheme 2016-2017 - page 18

Summary No-06
Profile of the Student:
Name: Dishika Agrawal
Degree Programme: MBA
University/ Institute: School of Management Studies, MNNIT, Allahabad
Profile of Mentor:
Name: Pratima Mishra
Designation: DGM
Department: DOR & BID
Name of Regional Office: Uttar Pradesh (Lucknow)
Objectives of the study:
i. To identify the issues faced by the weavers.
ii. To identify the credit providing agencies to the handloom sector
iii. To suggest policy changes for more equitable and efficient productivity of handloom sector.
Research Methodology:
The study is based on the sample population of the weavers in Varanasi and Azamgarh districts of Uttar
Pradesh, chosen on the basis of concentration of handloom weavers. The sample size comprised of
100 weavers. Half of the sample size was covered in Varanasi and half of it was covered in Azamgarh.
The members of primary weavers’ cooperative society, common facility centers, DDMs of respective
districts and various agencies associated with the handloom sector of the districts were also contacted
and information collected from them.
Major Findings:
The study identified the huge economic importance of the sector in the country. A number of schemes
that were launched for the upliftment of the sector were studied and their financial and physical
importance analyzed
a. Study findings in Varanasi:.
I. Problems of banking agencies in Varanasi:
As per the interaction with the various banks
in the district following points of concerns were observed:
Lack of awareness:
One of the important problems faced by the credit support agencies
was the illiteracy among the handloom weavers. The weavers were ignorant about the various
government schemes and at the same time they did not have sufficient knowledge regarding the
procedures for availment of loan advancement.
Recovery of loan:
Banks in the district faced another crucial problem i.e. lack of repayment.
The weavers didnot repay the loans they had taken previously on account of various reasons. As
a result of which the banks feel insecure in advancing further loans to the handloom sector.
Lack of collateral:
The weavers did not have sufficient income and hence they were incapable
in providing collateral as well as guarantor to the bank, hence the banks failed to advance them
loans for up scaling their business.
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