Scheme for North East Handloom and
Handicrafts (SNEHH)
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Here’s a scheme from NEDFi that helps the
manufacturers/designers/exporters of handloom and handicrafts
products.
NEDFi sees a great potential for Handloom and
Handicrafts and would like the North East to take its rightful place
on the commercial map for these products.
Do you know, Handloom and Handicrafts play a
significant role in the economy of the North East? According to a
study sponsored by NEDFi in 2002, this region contributes
- 19.18% of the total number of handicrafts
units in India
- 21.71% in terms of artisans
- 79.58% in terms of value of
production
- Every fourth person in the North East is
dependent on handloom and handicraft products for livelihood
-
This sector provides more
than 90% of livelihood to around 61% of the total artisan
households in the region
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Every state in the region
has some unique items of production that have been highly
appreciated within the country and also abroad.
-
Handloom and handicrafts
products from the NE have excellent brand value
In spite of abilities and
skills, handlooms and handicrafts from the North East have not taken
off on a commercial scale. Although the literacy of the artisan is
more than average for the region as a whole, they are not well
informed about the rapidly changing fashion world.
NEDFi being the premier
financial institution in the region, has realised the potential that
remains untapped in this sector and is aware of the problems of
design upgradation and product diversification. The Techno-Economic
Development Fund (TEDF, a wing of NEDFi) has conducted a study
through Confederation of Indian Industry (CII) to improve the
handloom and handicrafts products of the North East. Based on the
study, CII has already taken up a novel project in association with
NEDFi to find market from the corporate houses for handloom and
handicraft products.
Experience shows the
entrepreneurs in this line of business face difficulty in getting
timely and adequate finance at a reasonable rate. As a special step
in this direction, NEDFi has launched this scheme called the SNEHH -
Scheme for NE Handloom and
Handicrafts.
Preference
would be given to
-
Women
entrepreneurs of the region
-
Members of
EPCH belonging to the North East
-
Participants
in national and international fairs/exhibitions.
-
National,
regional and state level award winners
Training
Training will be
provided from time to time depending on the needs of the
entrepreneurs. Design and Development of the products of the
region is one of the priority items in NEDFi’s agenda. Reputed
experts may be brought to the region for the purpose in
cooperation with other agencies. Assistance will also be provided
in patenting products of the craftsmen.
Participation in Exhibitions
NEDFi will facilitate
deserving entrepreneurs to participate in fairs and exhibitions in
important locations.
The borrowers will be given
ample opportunities to display their products at NEDFi
Haat for
popularizing their products and market tie-up. Many entrepreneurs
have received market tie-ups based on such displays.
Eligibility conditions
- The scheme is designed to
help the manufacturers/designers/exporters of handloom and
handicrafts products
- The proposed units could be
proprietorship, partnership or a company
- The promoters or their units
must not be a defaulter in any government scheme and/or
with any bank/NGO. They must have a clean track record
Nature and Extent of Finance
- Maximum project size could
be Rs. 25 lakhs
- NEDFi would provide finance
up to 25% of the project cost as equity
- The promoter contribution
would be at least 15% of the project cost
- Rest of the project cost to
be funded under NEDFi’s composite loan (Term Loan and Working
Capital scheme)
Interest Rates
- Service charge of 1.0% on
the equity portion
- The rate for the composite
loan will be fixed at Prime Lending Rate
Repayment
- As per the usual norms of
the Corporation. Details available with any office of NEDFi
Security
- Mortgage/hypothecation of
the assets of the unit
- Personal guarantee of the
promoters and one/two respectable persons having the capability
to repay the loan
- Collateral security
depending on the project size
Others conditions
Export/domestic orders, if any, have to be
produced along with the loan application.
Entrepreneurs would need to submit an
application in the prescribed format of NEDFj to avail the loan.
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