Textile industry in India covers a large gamut of activities and plays a significant role in the economy for its contribution to the country’s GDP, employment generation and earning of foreign exchange.

NCDC has been promoting the textile cooperatives covering from field to fabric, by providing financial assistance for the development of Ginning & Pressing, Spinning, Weaving, Processing, Garmenting, Knitting and weaker section activities such as Handloom, Coir, Jute & Sericulture.

Eligible Cooperative Societies:

  • Cooperative societies at primary & district level.

  • Cooperative federations at State Level.

  • Multi-state cooperatives.

  • FPOs registered under Cooperative Societies Act.

Mode of Funding:

Financial assistance is provided either through the State Government or Directly to the eligible cooperatives. In case of State Government funding, no need for security from the State Government.

Long term assistance:

The quantum of assistance varies upto 90% of the project cost based on techno-economic merits of the project. The type of assistance available includes assistance for establishment of new units, modernization/ expansion/ rehabilitation/ renovation of existing units, margin money, construction of work shed, purchase of looms & its accessories, creation of processing infrastructure facilities, etc.

Working Capital assistance through Federations

Timely availability of adequate working capital at affordable rates especially in sectors involving seasonal activities plays a crucial role in determining profitability of the project. NCDC has been providing working capital assistance to eligible cooperatives to manage their routine business operations as per the need. In order to take advantage of economy of scale, cooperative federation in the State can avail working capital assistance on behalf of their member cooperatives.

Credit Guarantee for Micro & Small Enterprises

Cooperatives falling under the classification of micro & small enterprises engaged in activities eligible as per MSMED Act and having Udyog Aadhaar Memorandum (UAM) will be able to avail collateral free assistance from NCDC. For further details on Credit Guarantee Scheme, please Click Here.

Norms for Direct Funding:

The following are the broader norms to be eligible for direct funding:

•    Net worth should be positive.
•    No erosion in paid up share capital.
•    Should be in a position to provide 1.25 to 1.50 times security.
•    The debt equity ratio considering all long term loans should normally be in the range from 65:35 to 70:30 for projects involving manufacturing/ processing activities;
•    Financial / operational performance of the cooperative should be at satisfactory level of NCDC.

For detailed norms of Direct Funding, please click here.

Dovetailing of State Government Schemes:

NCDC facilitates the eligible assisted cooperative textile units for availing subsidies provided by the respective State Government under its various schemes, wherever, applicable. For details of scheme, please refer the website of concerned State Government Departments.

Details of Textile Cooperatives assisted since inception:

As on 31.03.2023, 6161 textile cooperative units were assisted by extending financial assistance of Rs.4475.90 crore as per the details given below:

(Rs. in crores)

S.No.  Activity         Number of
Units Sanctioned   
Disbursement in FY 2022-23

Cumulative disbursement

(As on 31.03.2023)

1 Ginning &Pressing 93 Nil 32.70
2 Spinning 437
104.25 3245.57
3 Weaving, Processing & Garmenting 453 Nil 341.01
4 Handloom 3573 28.57 600.68
5 Coir 1421 Nil 207.57
6 Jute 184 8.76 48.37
  TOTAL 6161 141.58 4475.90

Loan Application Form for submitting the proposal to NCDC, can be downloaded from our website.


For further details, please contact or write to:

Textile Division
National Cooperative Development Corporation (NCDC)
4, Siri Institutional Area, Hauz Khas,
New Delhi – 110 016
Tel No.: +91-011-20862512, 20862866, 20862490, 20862801
Fax: +91-011-26962370, 20862619, 26602568

Regional Directorates of NCDC: Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai, Dehradun, Gandhinagar, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Patna, Pune, Raipur, Ranchi, Shimla, Thiruvananthapuram