In order to seek guarantee cover in respect of the credit/loan to be sanctioned to the handicraft artisans by Member Lending Institutios (MLIs) , an advance amount covering Guarantee Fee / Annual Service Charges payable by various MLIs to CGTSI , Mumbai has been sanctioned in favour of six MLIs. These MLIs are coordinator banks of State Level Banker's Committee in the areas indicated against each below :-



Name of the Bank (MLI)

Amount Sanctioned          (Rs. In lakhs )

Coverage Area


United Bank of India

Mayukh Bhawan Branch

Salt Lake



West Bengal


UCO Bank

Branch Office Ashoka Market





Bank of Baroda

Aliganj Branch



Uttar Pradesh & Uttaranchal


Bank of Maharastra

Shivaji Nagar





State Bank of India

Dispur Branch



North Eastern States


Oriental Bank of Commerce

Head office

NEW Delhi


Northern Region


The desirous handicraft artisans may please get in touch with the nearest bank , who is a Member Lending Institution recognized by CGTSI , for obtaining credit. The artisans may also contact the nearest office of either the Regional Director of the Office of the DC(H) or Assistant Director (H) of M&SEC for further assistance in the matter.








Initially the Scheme shall be implemented on a pilot basis in 2006-07 and will be evaluated thereafter.


a). Credit qualifying for guarantee cover.


1.      1.      The scheme shall cover the credit extended to artisans under Artisan Credit Card issued by the Banks.


2.      2.       The scheme will be artisan-centric and shall not be applicable to SHGs, Federations of SHGs, Co-operative Societies and State Handicrafts Corporations, as their credit requirements are covered by the other schemes of Office of DC (Handicrafts) like margin money Scheme under AHVY.


3.      3.      The Artisans Credit Card Scheme already being implemented by the Office of the Development Commissioner (Handicrafts) will, henceforth, work under the umbrella of CGTSI. Therefore, the MLIs will be entitled for guarantee fee under the scheme covered by CGTSI. In case of Artisan Credit Cards, the period of rolling credit has been fixed at 5 years and the guarantee fee shall be payable only once during this period against an artisan.



b).    Application procedure for artisans.


1.      1.      The artisans shall be at liberty to file his loan application form for Artisan Credit Card to the bank branch of MLI of his choice, through the field offices of the O/o DC (H), State Handicraft Development Corporation or Directorate of Cottage and Small Scale Industry of the State Governments or appropriate body of the concerned State Government/Union Territory assigned the task of handicraft development.


2.      2.      The field officers of the Office of the DC (H)/concerned State Govt. Department/State Handicraft Development Corporation, etc. shall recommend/ forward the loan application to the concerned Bank Branch.


3.      3.      All Regional Directors (H) of the Office of the Development Commissioner (Handicrafts) shall ensure that applications from artisans for processing of Artisan Credit Cards and credit thereof must be deposited to the concerned banks/MLI promptly.










c).   Release of Guarantee money/ Annual fee to MLIs.


1.      1.      Advance money to cover payment of Guarantee Fee/ annual Service Charges has been placed at the disposal of select Regional Coordinator Banks. (Annexure ‘A’), as per the recommendations of the Regional Director


2.      2.      The concerned Regional Director will ensure that for every State/ UT, certain Zonal/Regional Branch for each MLI is designated as a Nodal Branch. The concerned RDs shall take immediate action to ensure that a separate account is opened in the Nodal Branch by each MLI in each State/UT.


3.      3.      Thereafter, the RDs shall receive the demand/requirement of funds for guarantee fee/ Annual service charges from such Zonal/ Regional branches dealing with Artisan Credit Card scheme based on the number of applications pending with the MLIs. A suggested proforma for such requisition is at Annexure ‘B’.


4.      4.      The concerned Regional Director of the Office of the DC (Handicrafts) will then promptly send, to the concerned Regional coordinator Bank his recommendation/authorization for release of the demanded guarantee fee/ annual service charges to the Zonal/ Regional branches of the MLIs/Banks.


5.      5.      The concerned Coordinator Bank shall, immediately after receipt of the above authorization, release the demanded amount to the concerned Zonal/ Regional branches of MLIs/Banks.


6.      6.      The designated nodal branch in each State/ UT of the MLIs, shall transfer the required amounts to cover Guarantee Fee/ Annual Service Charges either directly to CGTSI on behalf of their branches or to their branches sanctioning loan to handicraft artisans ACC under the scheme for onward transmission to CGTSI, as per the modalities finalized by the Regional Director with concerned MLI/ State coordinator.


7.      7.      The concerned Regional Director will keep proper documentation in his office regarding the money transferred from Regional Coordinator Banks to different Zonal/ Regional branches of MLIs/Banks as per requisition mentioned above and every Quarter, proper accounting of the money utilized shall be undertaken by the RD.


8.      8.      The concerned Regional Director shall sponsor, through the field offices, applications under ACC to different bank branches. Each Regional Director would consolidate the details of the application pending for each MLI for each State/UT and thereafter in coordination with such designated Regional/Zonal branches of the concerned MLI, the RD would ensure speedy disposal of such pending loan applications of the artisans.


9.      9.      The concerned Regional Director of the Office of the DC (Handicrafts) shall continuously monitor such requirements of Zonal/ Regional branches of MLIs/Banks and will also ensure steady flow of funds towards guarantee fee etc to the Zonal/ Regional branches of MLIs/Banks. This is necessary to ensure speedy implementation of the scheme and optimum flow of credit to the handicraft artisans.


10. 10. The Zonal/ Regional branches of MLIs/Banks (Nodal branch) will send a quarterly consolidated information to the Regional director of DC (Handicrafts) as per suggested proforma at Annexure ‘C’


11. 11. The Coordinator Bank shall send a quarterly report to the Regional Office of the Office of the DC (Handicrafts), under intimation to Headquarters’ Office of the DC (Handicrafts) as per proforma at Annexure ‘D’


12. 12. The Regional Director of the Office of the O/o DC (HC) shall reconcile the advances released with the Regional Coordinator Bank and shall arrange to send a quarterly report (proforma enclosed at Annexure ‘E’) to Headquarter Office indicating MLI-wise and state-wise statement of credit sanctioned and money utilized.


13. 13. The above statement shall also include details like name of the State, demographic details of the artisans such as male/female, SC/ST/OBC/ Minorities/ Physically Handicapped.


14. 14. While the Guarantee Fee will be provided by the Office of the Development Commissioner (Handicrafts), the Guarantee Cover would be provided by the CGTSI to the MLIs.


15. 15. All MLIs of CGTSI shall notify their respective branches all over the country along with the procedural modalities that are required to be fulfilled by the handicraft artisans so that the much-needed credit flows smoothly in the handicraft sector.


16. 16. It will be mandatory for the MLIs/Banks to indicate the serial numbers of the Artisans Credit Card/Identity Card, issued by the Office of the Development Commissioner (Handicrafts) so that the claims are preferred only in respect of bonafide handicraft artisans only.


17. 17. A list of Regional Directors and assistant directors of office of DC(Handicrafts ) is enclosed for reference. (Annexure ‘F’).


d)     Monitoring


1.      1.      It shall be the endeavor of the Regional Director with the Coordinator Bank to monitor the progress/implementation of the sanction of ACC under Credit Guarantee Scheme.


2.      2.      The Regional Coordinator Bank shall also arrange to create adequate awareness among various MLIs up to grass root level and sensitize them for effective credit delivery to the artisans community along with the needed formalities for obtaining guarantee cover from CGTSI.


3.      3.      The Regional Directors shall regularly attend meetings of SLBCs and ADs in the field shall regularly attend meetings of Lead Banks and Distt. Level Banker’s Committees to monitor and ensure smooth flow of credit to the artisans.