CGTSI/(44)/793

October 21, 2005

All the Member Lending Institutions (MLIs) 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)
Dy. General Manager