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BOB Weaver Mudra Scheme


  • The scheme aims at providing adequate and timely assistance from the Bank to the weavers to meet their credit requirement i.e. for investments need as well as for Working Capital in a flexible and cost effective manner. The scheme will be implemented both in rural and urban areas.


  • Existing or experienced Handloom Weavers involved in weaving activity


  • Purchase of looms and related CAPEX and need based WC requirement


  • Demand loan & Working capital finance


  • Rs.5.00 Lacs (Inclusive of Demand Loan and W.C. finance)

Rate of Interest

  • ROI as per prevailing rate applicable to MSME segment as under
  • Competitive rate as per MCLR
  • Interest subsidy to be claimed from GOI: Difference amount i.e. 4.35% at present subject to change in MCLR shall be calculated and adjusted in the account on quarterly basis.
  • (Pl. note that interest subsidy will be available only up to -3- years from the date of first disbursement)


  • 20 % of total project cost (Capital Expenditure & W.C)
  • Margin up to Rs.10000/- or 20% whichever is less shall be provided by GOI.

Assessment of Limits

  • Demand Loan: 80% of cost of Looms and other capital expenditure
  • Working Capital limit: Bank finance will be 20% of estimated / projected turnover less margin.

Subsidy to be provided by Government

  • Interest subsidy- To provide working capital loans at the interest rate of 6% to handloom sector; the quantum of interest subsidy to be borne by the Govt of India will be limited to the difference between the actual rate of interest as applicable/charged by the Banks and 6% interest to be borne by the borrower. The maximum interest subsidy would be capped at 7%.
  • Margin Money assistance:

@20% of the project cost subject to a maximum of Rs.10000/- per weaver will be provided.


  • Exclusive Hypothecation Charge on machinery and stock
  • Credit guarantee from CGTMSE

Issuance of Mudra Card

  • The beneficiaries under the Scheme will be issued a Mudra Card having the daily withdrawal limit of Rs.5000/- per day.

Kindly visit to the nearest branch for further details

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