Financial Support

Product Development

Social interventions (Diagnostic survey and formulation of project plan, Mobilization of artisans)

Enterprise Loan Scheme (ELS)There are many institutions and schemes providing financial support to the artisan groups in India. Scroll down for information about some of them.


National Bank for Agricultural and Rural Development (NABARD) is an apex Development Bank with a mandate for facilitating credit flow for promotion and development of activities including handicrafts and other rural crafts.

NABARD facilitates marketing of artisan products by promoting them within NABARD and among other agencies, capacity building of artisans and entrepreneurs in marketing aspects, buyer seller meets, exposure visits and organization of exhibitions etc.

With the objective of providing the rural artisans and entrepreneurs access to urban and upcountry markets, products of few artisans supported by NABARD under its various promotional programmes are displayed along with the contact addresses.

For further information, please contact

The Chief General Manager, DPD.NFS, National Bank for Agriculture and Rural Development, Plot no. C-24, G- block, Bandra Kurla Complex, Bandra (E), Mumbai- 400051. E

Refinance Schemes

Rural Non Farm Sector Schemes

Rural Non Farm Sector (RNFS) holds the key to faster economic development of the country. It holds the potential and promise for generating employment and increased income in the rural areas. NABARD has, therefore, adopted RNFS as one of its thrust areas and has been promoting this sector through multi-pronged strategies. The strategies include:

  • Facilitating enhanced credit flow to the sector
  • Promotion of RNFS activities by way of capacity building of various stakeholders
  • Enhancing credit absorption capacity
  • Promoting Rural Innovations in the Farm, Non-Farm and Micro Finance Sectors and replications of successful models, approaches

NABARD has evolved several refinance and promotional schemes over the years for the purpose and has been making constant efforts to liberalize, broad base and refine/ rationalise the schemes in response to the field level needs. The focus has been on greater credit flow and provision of linkages for small, cottage and village industries, handicrafts and other rural crafts in the decentralised sector in the rural areas.

Refinance assistance for Non Farm Sector

NABARD provides refinance facilities to Commercial Banks (CBs), Regional Rural Banks (RRBs), State Co-operative Banks (SCBs), State Co-operative Agriculture and Rural Development Banks (SCARDBs), Scheduled Primary Urban Co-operative Banks and Non-Banking Finance Companies (NBFCs) to enable them to support the activities of small, tiny, cottage and village industries, handicrafts and other rural crafts in rural areas. Refinance is also provided for promotional and infrastructural support activities conducive to the development of tiny rural industries. NABARD refinance is available for setting up of new units and for modernization/ renovation/ expansion/ diversification of existing units. Over a period of time, a number of schemes have been evolved and suitably modified from time to time. Currently they are classified as follows:

A. Automatic Refinance Schemes

  • Enterprise Loan Scheme (ELS)
  • Small Road and Water Transport Operators (SRWTO) Scheme
  • Soft Loan Assistance for Margin Money Scheme
  • Rural Housing Scheme

B. Schemes under pre-sanction procedure

Automatic Refinance Facility (ARF)

Automatic Refinance Facility was introduced to enable the banks to obtain financial accommodation from NABARD up to certain limits, without going through the detailed pre-sanction formalities. Banks will appraise the proposals received, sanction and disburse loans for individual projects. Refinance is released to the banks based on a simplified drawl application and on their certification that the individual loans sanctioned conformed to the policies, procedure and guidelines laid down in the refinance schemes of NABARD.

For more info follow the link


CAPART was formed by amalgamating two agencies the ‘Council for Advancement of Rural Technology’ (CART) and People’s Action for Development India (PADI). CAPART is an autonomous body registered under the Societies Registration Act 1860,and is functioning under the aegis of the Ministry of Rural Development, Government of India. Today, this agency is a major promoter of rural development in India, assisting over 12,000 voluntary organizations across the country in implementing a wide range of development initiatives.

Formed in 1986 it is a nodal agency for catalyzing and coordinating the emerging partnership between voluntary organizations and the Government for sustainable development of rural areas.

Schemes at CAPART

CAPART supports project proposals from voluntary organizations working in rural areas. The Brochures and guidelines for different schemes are available from headquarters and Regional Comned Regional Committee. Proposals for projects above this amount should be submitted directly to CAPART headquarters.


Each project submitted to CAPART goes through a process of on-site pre-funding appraisal, to assess its feasibility in relation to the local situation, and the capacities and competence of the organization proposing to implement it. In addition, each funded proposal is evaluated at the mid-term stage to allow for mid-course corrections. End-term evaluations and impact assessments complete the project cycle, and feed into the ongoing process of planning and strategising in each project division.

Project appraisals and evaluations are carried out by external experts drawn from the CAPART panel of project evaluators, which includes subject specialists from various disciplines. Empanelment is through a rigorous screening process, the main criteria being professional qualifications, an understanding of rural development and commitment to voluntary action for development.


  • Registration under the Societies Registration Act, 1860 (or a State amendment of this Act), the Indian Trusts Act, 1862, or the Charitable and Religious Trusts Act, 1920.
  • At least three years of experience of working in the field after registration.
  • A strong field presence and experience of mobilizing communities to act for development.


  • CAPART gives priority to voluntary organizations with a good track record and proven competence in community mobilisation and empowerment of disadvantaged groups.
  • Organizations accessing CAPART support for the first time are required to submit their proposals only directly to concerned Regional Committees.
  • Project proposals must be submitted in the proper format (included in each of the scheme guidelines) and must be accompanied by a complete organization profile in the appropriate format (also included in the scheme guidelines).

Schemes of the Office of Development Commissioner (Handicrafts),Ministry Of Textiles, Government Of India

The Office of Development Commissioner (Handicrafts) formulates and implements several schemes for handicraft development. It also arranges promotional programmes for this purpose.

The Office of Development Commissioner (Handicrafts) formulates and implements several schemes for handicraft development. It also arranges promotional programmes for this purpose.

Babasahib Ambedkar Hastshilp Vikas Yojana


This scheme aims at promoting Indian handicrafts by developing artisans clusters into professionally managed and self-reliant community enterprises on the principles of effective member participation and mutual cooperation. This thrust of the scheme is on a projectised need based integrated approach for sustainable handicrafts development through participation of craftspersons leading to their empowerment.


  • Social interventions (Diagnostic survey and formulation of project plan, Mobilization of artisans)
  • Technological interventions (Training of trainers, skill up-gradation, Development and supply/dissemination of modern improved tools, equipments etc., Design and technological up-gradation, Revival of languishing crafts, CFC etc.)
  • Marketing interventions (Marketing events, Marketing infrastructure, Publicity and services, International marketing).
  • Financial interventions (Margin money)


Financial assistance under this scheme can be given to/through the Reputed NGOs/Cooperatives/Apex cooperative societies /Trusts/ COHANDS/ EPCH/ CEPC/ MHSC/IICT/ NCDPD /NIFT /NID /University Deptt., DRDA/ NISSIET, EDIs, Central/State Hand-loom and Handicrafts Development Corporations and other related Govt. Corporations/Agencies, Federation of NGOS/SHGs Consortium etc. registered under proper statute, for sustainable development of identified craft clusters.

Bima Yojana for Handicrafts Artisans Objectives

“Bima Yojana” for Handicraft Artisans is in operation since 2003-04 with the objective of providing life insurance Protection to Handicraft Artisans which has two components namely “Janshree Bima Yojana” & “Add-on Group Insurance Scheme” for male as well as female age group of 18 -60 years. The scheme is being implemented through Life Insurance Corporation of India.

Under the Janshree Bima Yojana the total premium is Rs. 200/- per beneficiary per annum. This premium is shared by the Ministry (Rs. 60/-), by the LIC (Rs. 100/-) and the remaining Rs. 40/- contributed by the handicraft artisans. In addition to covering risk for Death (Rs.20,000/- Natural death, Rs. 50,000/-Accidental death) & Disability (Rs. 25,000/-), the coverage includes Educational Assistance @ Rs. 300/- per quarter per child for two children of the handicraft artisans for school education of standard IX to XII.

Under The “Add- on Group Insurance Scheme”, the beneficiary artisans and the Government of India equally share the total premium of Rs. 180/- per annum. This component enhanced coverage for Death (Rs. 50,000/- for accidental death) & Disability (Partial- Rs. 25,000/- Permanent Rs. 50,000/-).

Under the scheme up to 31st March, 2006, 1,96,507 artisans have been covered against the target of 2 lakhs artisans, 324 claims have been settled involving an amount of Rs. 64,80,000/-. Besides an amount of Rs. 18,31,200 has been disbursed by the LIC under the Shiksha Sehyog Yojana.


All crafts persons, whether male or female, between the age group of 18-60 years will be eligible to be covered under the BIMA YOJANA FOR HANDICRAFTS ARTISANS.

Credit Guarantee Scheme Objectives

The objective of the scheme is to alleviate the problems of collateral security or third party guarantee and remove implements to flow of credit in the handicraft sector.

Under this scheme credit guarantee cover of upto 75% of the credit facility is provided subject to maximum of Rs. 18.75 lakhs for the loan up to Rs. 25 lakhs.

An amount of Rs. 5.10 Crore has been placed with 7 Regional Coordinator Banks towards guarantee fee. This is expected to facilitate a credit of Rs. 222.50 crore to cover target Of 94,000 artisans during 2006-07.


The handicrafts artisans/ manufacturers/ producers who are engaged in manufacturing activities in Handicrafts Sector are covered under Credit Guarantee Scheme.

Training & Extension

The main objective of this scheme is to enhance the capacity building artisans, NGO etc. and to meet the administrative expenditure of Carpet Weaving Training Centre in J&K and 23 cane & Bamboo departmentally run training centres.


Incurring expenditure for conducting field visits/study tours in India and abroad to give exposure to designers and master crafts persons working in handicrafts sector with a view to enable them to learn and adopt best practices prevailing for promotion and development of handicrafts sector in India. Financial Assistance for capacity building and to conduct awareness-cum-training workshops/seminars for artisans, NGO’s etc. in various spheres related to handicraft sector.

Eligible Organizations

The scheme shall be implemented departmentally as well as through reputed research institutions, registered organizations/public sector units, experts etc. specializing in concerned areas.

Research & Development


The main objective of the scheme is to have a regular system of feedback of economic, social, aesthetic and promotional aspects of various crafts and artisans in this sector and to address the issues arising out of WTO stipulation case.


The components include:

  • Surveys/Studies of specific crafts for which adequate information is not available
  • Problems relating to availability of raw material, technology, design, common facilities, etc.,
  • Living and working conditions of artisans in specific areas or crafts,
  • Market evaluation studies of specific crafts for either domestic or overseas markets,
  • Techno-economic feasibility studies and post evaluation of the various promotional projects or programmes undertaken in the handicrafts sector,
  • Areas requiring special study for uplift of the weaker sections viz. Scheduled castes and Scheduled Tribes,
  • Financial assistance for preparation of legal, para legal, standards, audits and other documentation leading to labeling/certification.
  • Financial assistance to organizations for evolving, developing a mechanism for protecting crafts, design, heritage, historical knowledge base, research and implementation of the same enabling the sector/segment to face challenges for utilizing the opportunities of post WTO regime,
  • Financial assistance for taking up problems/issues relating to brand building and promotion of Indian Handicrafts and
  • Any other problems/issues of specific nature relating to handicrafts sector.


Assistance under the scheme will be extend-able to an organization registered under any of the statutory Acts (Companies Act 1956, Societies Registration Act 1860, Cooperative Act etc.) or registered with any bodies like DCSSI, Office of the Development Commissioner (Handicrafts), etc. or universities and recognized research institutions. Generally, such assistance would not be extensible to any particular individual unless he is an eminent scholar or a person associated with promotion of handicrafts for a long time.

Export Promotion


The objective of the scheme is to promote export of handicrafts including hand knotted carpets and floor covering from Indian. Initiatives such as identification of handicrafts concentration area for development of exportable products, undertaking research and studies in order to identify markets abroad, taste and fashion, prevailing designs etc., participation in exhibitions etc. and addressing the issues emerging out of the liberalized and post WTO era would be undertaken under this scheme.


  • Product Development
  • Publicity and Marketing
  • Social and other welfare measures


The financial assistance under the scheme is extended to the Central/State Handicrafts Corporations, Council of Handicrafts Development Corporation (COHANDS), Apex Coop. Societies, NGOs registered under Society’s Act Trusts, and such other organizations engaged in the development and promotion of handicrafts sector registered under any other Statutory Acts, EPCH, CEPC, NCDPD, IICT, India Exposition Mart, Registered Handicrafts exporters, reputed designers/technologists approved by CEPC/EPCH/Office of the DC (H).

Design & Technology Upgradation Objective

Design & Technology up-gradation scheme aims at up-gradation of artisans skills, improvement and diversification of products, development of new design of prototypes, supply of improved/modern equipments to the craft persons, revival of rate crafts to preserve the traditional heritage, preservation of traditional art & crafts of high aesthetic value, etc.


  • Financial assistance to Institutes like IICT, MHSC, NCDPD etc.
  • Activities of RDTDCs. – DTC in Carpets in J & K and Cane & Bamboo in the country.
  • Financial Assistance to Shilp Guru (Heritage Masters).
  • Financial Assistance for training under Guru Shishya Parampara.
  • Financial assistance for training the trainer.
  • Financial assistance for Development supply/Dissemination of Modern Improved Tools, Equipments, Products and Process Technologies.
  • Assistance for Design & Technology Development Project.
  • Assistance for Integrated Design & Technology Development Project.
  • Documentation Preservation and Revival of old and rare and languishing crafts.
  • National Award for outstanding contribution in Designs in Handicrafts sector.
  • Financial Assistance for Institutions to be set-up under the State Initiatives.
  • Financial Assistance for setting up of museum or for already existing museum.


Financial assistance under the Design and Technology up-gradation Scheme is extended to the Central/state Handicrafts Corporation, Apex Cooperative Societies, NGOs registered under Societies Act, Trust, Handicrafts Societies, EPCH, CEPC, COHANDS, NCDPD, MHSC, IICT, Crafts Council of various States, NID, NIIFT, IIT and other reputed institute dealing in handicrafts, renowned designers, technologist, Shilp Gurus National Awardees, Master craft persons, experts having experience in handicrafts.

Marketing Support & Services


The main objective of this scheme is to create awareness of Indian Handicrafts among the masses by organizing a number of marketing events in big and small cities, to provide financial assistance to state Handicrafts Development Corporations, Apex Cooperatives and prominent NGOs for opening new Emporia at suitable places to enable the craft persons to have permanent sales outlets for their products, to popularize and publicize handicrafts sector, to provide services in the form of entrepreneurship development programme etc.

Components and Sub-Components

  • Marketing Events (Holding of National Handicrafts Expo, Holding of Crafts Bazars and Holding of Exhibitions)
  • Marketing Infrastructure (Setting up of Urban Haat/crafts specific Haat/Local Haats, Opening of new exporia/renovation expansion of existing emporia, Setting up of Craft Development Centers)
  • Marketing Services (Holding of Marketing Workshops at National/State/Local Levels programme and Entrepreneurship Development)
  • Publicity (Internal Publicity)

Eligibility: Grant-in-Aid

The financial assistance under the scheme shall be extended to the Central/State Handicrafts Development Corporations, COHANDS, Apex Societies, NGO’s registered under Society Act, Trusts and such other organization engaged in the development and promotion of handicrafts sector registered under or any other statutory Acts.

References and additional resources: