In this study, eri silk-based handloom fabrics were finished with Aloe vera gel employing maleic acid as a cross-linking agent using a pad-dry-cure method. Water-soluble Aloe vera gel of varying concentrations of 5 to 15% (w/v) was also used in the finishing bath for imparting antibacterial property to the finished fabric along with the anti-crease properties. Assessment of changes in the properties of finished fabric shows substantial improvement in wrinkle recovery of the finished silk fabric achieved at the expense of strength and flexibility at moderate levels. Changes in the chemical nature of silk fabric on such modifications have been studied by infrared (IR) spectroscopy and reported also in this research article. The study proposes a thermal curing system that is conducive to in-situ polymerization of maleic acid in presence of Aloe vera for the development of eco-friendly eri silk-based handlooms with antibacterial and anti-crease properties, without a significant loss in strength. The antimicrobial property appears to remain significant even when the fabric is subjected to wash up to 10 wash cycles.