BGVB Artisans Credit Card Scheme
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.
- All artisans involved in production / manufacturing process would be eligible.
- Preference would be given to artisans registered with Development Commissioner (Handicrafts).
- Thrust in financing would be on clusters of artisans and artisans who have joined to form Self Help Groups (SHGs), Joint Liability Groups (JLGs).
- 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.
- No margin up to overall credit limit upto Rs.25000/-.
- Beyond Rs.25000/- –– 25%.
- Cash Credit: Payable on demand. This facility is subject to annual review. The interest is to be serviced as and when charged.
- For Term loan component 36 to 60 months depending upon projected average DSCR of preferably 1.5 but not below 1.20.
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.
- Working Capital- Nil.
- Term Loan
- Upto Rs 25000 - Nil.
- 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.