OBJECTIVE:
To provide hassle free financial support to Small Business units, Retail Traders, Artisans, Village Industries, Micro & Small Enterprises (Manufacturing & Services) & Tiny Units, Professionals and Self Employed Persons, etc.
ELIGIBILITY
Borrowers belonging to aforesaid categories enjoying Cash Credit limits upto Rs. 10 lakh and having satisfactory dealings with the bank for the last three years.
LOAN AMOUNT
Extent of limit Maximum upto Rs. 10 lakh*
*Condition apply
Nature of limit Cash Credit
ASSESSMENT OF CREDIT CARD LIMIT
Credit Card Limit Small business, retail traders, etc upto 20% of the annual turnover
Professional and self-employed persons 50% of their gross annual income as per Income Tax Return
Micro & Small Enterprises units as per simplified turnover method.
MARGIN
A. For Micro & Small Enterprises (other than Trading)
a- Cash Credit (Stocks)
| Extent of Limit | Margin |
|---|---|
| (i) Upto Rs.2.00 lakh | Nil |
| (ii) Above Rs.2.00 lakh upto Rs. 5.00 lakh | 15% |
| (ii) Above Rs 5.00 lakh | 20% |
B. For Micro & Small Enterprises (Trading)
Cash Credit (Stocks)::30% – 40% keeping in view, nature of stocks, price fluctuation, shelf life etc.
SECURITY
Hypothecation of stock, receivable, machinery,equipment, etc.
COLLATERAL SECURITY (For Micro & Small Enterprises )
No Collateral Security & Third Party Guarantee for Loans upto Rs.10 lakh covered under Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE).