The SBI SME Artisan Credit Card scheme For Skill Based Businesses provides loans to Artisans to meet their credit requirements both for investments as well as working capital in a flexible manner at liberal rates of interest. Preferences to be given to artisans registered with Development Commissioner (Handicraft). Product aims at clusters supported by Self Help Group (SHG).
This product provides adequate & timely assistance to the artisans meet their credit requirements both for investments as well as for working capital in a flexible manner and at reasonable rate of interest.
Features of SBI SME Artisan Credit Card
- New units are eligible for SME Artisan Credit Card
- A photo Id card will be issued. It contains name, limit and validity of the facility.
- A passbook will be issued which will contain all details of the beneficiary including address, and all transactions will be recorded in it on an ongoing basis.
- Llimit is valid for 3 years subject to annual review.
- Beneficiaries registered with the Development Commissioner (Handicrafts) will be eligible for insurance cover under group guarantee scheme for which premium will be paid by the government and the beneficiaries in the ratio of 60:40.
- Maximum loan under the scheme is Rs. 2.00 Lakh.
- No collateral security is required. Loans will be covered under CGTMSE scheme, the fees for the same will be reimbursement by the Development Commissioner (Handicrafts, Ministry of Textile, GOI).
- Existing borrowers under the Bank's are eligible for this scheme. However beneficiaries of other government-sponsored schemes are not eligible for this facility.
Security required for availing SBI SME Artisan Credit Card
- Hypothecation of assets financed by the Bank.
- No collateral is required ie., SBI SME Artisan Credit Card is a collateral free loan scheme.
- Eligible activities may be covered under CGTMSE guarantee scheme.
Documents Required for SBI SME Artisan Credit Card
- Proof of identity – Voter’s ID Card / Passport / Driving License / PAN Card / signature identification from present bankers of proprietor, partner or Director (if a company).
- Proof of residence – Recent telephone bill, electricity bill, property tax receipt / passport / Voter’s ID Card of proprietor, partner or Director (if a company).
- Proof of business address
- Proof of Minority (If applicable)
- Last three years balance sheets of the units along with income / sales tax returns etc. (APPLICABLE FOR ALL CASES FROM RS. 2 LACS AND ABOVE). However, for cases below fund-based limits of Rs.25 lacs if audited balance sheets are not available, then unaudited balance sheets are also acceptable as per extant instructions of the bank. For cases of Rs.25 lacs and above, the audited balance sheets are necessary.
- Memorandum and articles of association of the Company/ Partnership Deed of partners etc. (only if applicable).
- Assets and liabilities statement of promoters and guarantors along with latest income tax returns (only if applicable).
- Rent Agreement (if business premises on rent) and clearance from pollution control board if applicable.
- SSI registration if applicable.
- Projected balance sheets for the next two years in case of working capital limits and for the period of the loan in case of term loan. (APPLICABLE FOR ALL CASES FROM RS. 2 LACS AND ABOVE).
- In case of takeover of advances, sanction letters of facilities being availed from existing bankers / Financial Institutions along with detailed terms and conditions.
- Profile of the unit (includes names of promoters, other directors in the company, the activity being undertaken, addresses of all offices and plants, shareholding pattern etc. (APPLICABLE FOR CASES WITH EXPOSURE ABOVE Rs.25 LACS).
- Last three years balance sheets of the Associate/Group Companies (If any), (APPLICABLE FOR CASES WITH EXPOSURE ABOVE Rs.25 LACS).
- Project report (for the proposed project if term funding is required) containing details of the machinery to be acquired, from whom to be acquired, price, names of suppliers, financial details like capacity of machines, capacity utilization assumed, production, sales, projected profit and loss and balance sheets for the next 7to 8 years till the proposed loan is to be paid, the details of labour, staff to be hired, basis of assumption of such financial details etc. (APPLICABLE FOR CASES WITH EXPOSURE ABOVE Rs.25 LACS).
- Review of account containing month wise sales (quantity and value both), production (quantity and value), imported raw material (quantity and value), indigenous raw material (quantity and value), value of stocks in process, finished goods (quantity and value), debtors, creditors, bank's outstandings for working capital limits, term loan limits, bills discounted. (APPLICABLE FOR CASES WITH EXPOSURE ABOVE Rs.25 LACS).
- Photocopies of lease deeds / title deeds of all the properties being offered as primary and collateral securities.
- Position of accounts from the existing bankers and confirmation about the asset being Standard with them (In case of takeover).
- Manufacturing process if applicable, major profile of executives in the company, any tie-ups, details about raw material used and their suppliers, details about the buyers, details about major competitors and the company's strength and weaknesses as compared to their competitors etc. (APPLICABLE FOR CASES WITH EXPOSURE ABOVE Rs.25 LACS).