BGVB Artisans Credit Card Scheme

Purpose:

To provide adequate and timely assistance to the artisans to meet their credit requirements both investments needs as well as working capital in a flexible and cost effective manner.

Eligibility:

1. All artisans involved in production / manufacturing process would be eligible.
2. Preference would be given to artisans registered with Development Commissioner (Handicrafts).
3. Thrust in financing would be on clusters of artisans and artisans who have joined to form Self Help Groups (SHGs), Joint Liability Groups (JLGs).
4. All new units and all existing borrowers enjoying credit facilities upto Rs.2.00 lakhs and having satisfactory dealings with the bank.

Nature of Facility:

Cash Credit Limit / Term loan

Quantum of Finance:

The credit limit would be fixed based on assessment of working capital requirements (20% of anticipated turnover) as well as cost of tools and equipments for manufacturing process. Maximum limit both Cash Credit and Term Loan taken together is Rs.2.00 lakhs.

Rate of Interest:

Floating rate. Aligned with rate of interest applicable on Micro Enterprise (Manufacturing) communicated from time to time.

Margin:

1. No margin up to overall credit limit upto Rs.25000/-.
2. Beyond Rs.25000/- –– 25%.

Repayment:

1. Cash Credit: Payable on demand. This facility is subject to annual review. The interest is to be serviced as and when charged.
2. For Term loan component 36 to 60 months depending upon projected average DSCR of preferably 1.5 but not below 1.20.

Security:

Primary Security: The assets financed would be hypothecated and necessary documents evidencing charge thereon should be obtained as per norms

No need of collateral security.

Processing Charge:

1. Working Capital- Nil.
2. Term Loan
   1. Upto Rs 25000 - Nil.
   2. Above Rs 25000 - 1% of the Term Loan.

Appraisal of the credit facility under the scheme will be subjected to usual procedures prescribed in the lending policy of the Bank and other credit related circulars/manuals.

Credit Guarantee Cover:

The credit facility sanctioned under the scheme is subject to credit guarantee coverage under CGTMSE.

Please contact your nearest BGVB branch for further information.
Terms & conditions apply.