CGTSI/ (44)/793

October 21, 2005

All Member Lending Institutions of CGTSI

Circular No. 28 / 2005-06

Dear Sir / Madam,

Eligibility of credit facilities extended to Handicrafts artisans under Credit Guarantee Scheme (CGS) of CGTSI

The Development Commissioner (Handicrafts), Ministry of Textiles, GoI [DC(HC)] has advised that the Credit Guarantee Scheme for handicrafts artisans, which was hitherto being implemented through his Office only in the State of Jammu & Kashmir as a part of special package for that State, has now been extended to the rest of India to facilitate credit flow to handicrafts sector all across the country. In view of this development, the credit facilities extended to the handicrafts artisans by the eligible banks [who have registered with CGTSI as its Member Lending Institutions (MLIs)] and covered it under Credit Guarantee Scheme shall be reimbursed by the office of DC(HC) guarantee fee and annual service fee paid by them to CGTSI. For the procedural aspects relating to reimbursement of guarantee / service fees the member-banks have to approach the O/o of DC (HC) directly.

The member-banks are requested to undertake prompt and speedy processing of the eligible credit proposals / applications of handicrafts artisans and also to facilitate credit through Artisan Credit Cards (ACC) issued to artisans and there coverage under CGS. It may be reiterated that the member - banks should ensure that all terms and conditions stipulated under the CGS of CGTSI are fully satisfied, prior to lodging the applications for seeking guarantee cover.

Please feel free to get in touch with us in case any further clarifications are required.

Thanking you,

Yours faithfully,

Sd/-

(S N Sadhwani )

Deputy General Manager