Govt Approves ₹33 Crore Loan Waiver for Handloom Weavers

Thousands of Weavers to Get Relief on Pending Bank Loans Under Telangana’s Fresh Policy Order

Many weavers in Telangana had not been able to sleep peacefully over the past few years. For them, bank notices and reminders became more regular than monthly orders. Some even stopped their looms altogether, choosing silence over the sound of threads.

In response to these growing concerns, the state government has sanctioned a ₹33 crore loan waiver, bringing long-awaited financial relief to thousands of handloom workers.

As per the official order issued on July 1, 2025, the Industries and Commerce Department cleared the budget for waiving bank loans of individual weavers taken between April 1, 2017, and March 31, 2024. This includes both the principal and the interest amount, up to ₹1 lakh per person.

The government has directed the Commissionerate of Handlooms and Textiles to begin implementation with immediate effect.

Who Will Benefit and How It Works?

According to G.O. Rt. No. 56, nearly 5,691 handloom weavers across the state are eligible for this waiver. This number was derived after collecting data through state-level handloom surveys and bank records.

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The scheme applies to loans borrowed from nationalized banks and District Cooperative Central Banks. Weavers whose loans exceed ₹1 lakh will need to repay the extra amount on their own. Only then will they be considered for the waiver.

Here’s a quick look at the eligibility details:

To ensure transparency, the state has mandated a full verification process at the district level. This will include confirming the borrower’s credentials, cross-checking with bank loan records, and validating repayment proofs in cases of partial settlement. The final list of beneficiaries will be published by local authorities.

What About Those With Larger Loans?

Many weavers took loans exceeding the ₹1 lakh limit, especially during the COVID-19 slowdown. For them, the government has added a strict condition. They must repay the remaining amount above ₹1 lakh before July 6, 2025. Failing to do so will result in automatic disqualification from the waiver.

This rule was mentioned clearly in the circular, but some early media reports missed this detail. The Hans India first reported this repayment condition and the July 6 deadline based on internal guidelines shared with district collectors.

Here is a look at the process for weavers with dues above ₹1 lakh:

A Closer Look at the Bigger Picture

This is not the first time Telangana has supported handloom workers. Government data from the Industries Department shows that between 2017 and 2023, earlier loan waivers worth ₹10 crore were given to around 2,467 weavers. However, this new ₹33 crore sanction is the biggest till date and covers a wider range of loan periods.

The handloom sector has also received other support recently. According to an official statement by the Handlooms and Textiles Commissioner’s office in June 2025, over ₹920 crore has been spent since 2014 on welfare schemes for weavers. 

This includes direct purchase of sarees and fabrics through Telangana State Handloom Weavers Cooperative Society (TSCO), also known as TGCO.

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Here’s how the government’s total support looks in the last 5 years:

Such a layered approach reflects the government’s growing attention towards reviving traditional sectors. It also answers recent criticisms raised by local unions who argued that policies were only benefiting big textile mills and leaving small weavers behind.

Other Handloom Welfare Programs

Beyond the recent ₹33 crore loan waiver, Telangana has supported weavers through multiple welfare schemes. 

• Under Netannaku Cheyutha, the state cleared pending dues worth ₹290 crore, offering direct financial help for buying yarn and dyes. 
• The Indira Mahila Shakti Saree Scheme generated steady work for nearly 16,000 weavers through government orders. 
• Another initiative, Handloom Abhayahastam, set up a ₹193 crore corpus for social security and pension benefits. 
• Over ₹579 crore worth of fabric orders were placed via TGCO to ensure regular income for weavers' societies. 

These programs form the backbone of Telangana’s handloom sector revival.

Conclusion 

This waiver gives many families a chance to get back on their feet. This support might not change everything overnight for a sector built on skill and tradition, but it creates a path forward. Several weaver cooperatives have also suggested follow-up steps like micro-grants for raw materials and digital training programs to help increase their market reach.

For now, though, the focus is on getting the money released and credited to the right hands. This news offers a turning point for thousands of households dependent on weaving. This move brings relief and recognition for a craft that has wrapped itself into the fabric of Telangana’s identity.
 

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