SBI Weavers Credit Card For Handloom Sector | lopol.org

SBI Weavers Credit Card For Handloom Sector

SBI for SME targets Handloom sector by providing an exclusive Credit Card loan scheme to weavers and its ancillary workers involved in weaving activities. Main highlight of SBI Weavers Credit Card Scheme is Collateral-free loan facility covered under CGTMSE guarantee coverage. It can be utilized as working capital or purchase of tools and equipment required for carrying out weaving activity.

SBI Weavers Credit Card For Handloom Sector

Eligibility for SBI Weavers Credit Card

  1. All weavers and ancillary workers involved in weaving activities.
  2. Preference will be given to weavers identified under Third Census of Handloom weavers conducted by Development Commissioner, Ministry of Textile as well as to weavers identified by State Governments and weavers who have formed society / Self Help Group (SHGs) / Joint Liability Groups (JLGs).
  3. Existing customers of bank enjoying credit facility and having satisfactory record.
  4. Possession of Photo Id Card issued by Development Commissioner (Handloom) or the State Government is a necessary pre-condition for availing this loan.

Purpose of SBI Weavers Credit Card

For working capital requirement as well as purchase of tools and equipment required for carrying out weaving activity.

Facility of SBI Weavers Credit Card

Term loan and cash credit with the limit of Rs. 2 lakhs

Margin for SBI Weavers Credit Card

  1. Upto Rs 25000: Nil
  2. Above Rs 25000: 20%

Interest Rate of SBI Weavers Credit Card

Linked to Base Rate.

Repayment Period of SBI Weavers Credit Card

  1. Term loan repayable in 3 years.
  2. Cash credit limit to be renewed in 3 years with annual review subject to satisfactory conduct of account.

Security for SBI Weavers Credit Card

  1. Primary: Hypothecation of assets financed by the Bank.
  2. Collateral: Nil. Account will be covered under CGTMSE guarantee coverage.

Special Features of SBI Weavers Credit Card

  1. Cash support is being offered to weavers in the following forms
    1. Margin money support up to Rs 42,000/- per weaver and/or
    2. Interest subsidy up to 3% on Bank loan And/or
    3. Reimbursement of one time guarantee fee as applicable (1% at present) and annual service charges as applicable (0.50% at present) for a period upto 3 years payable for guarantee cover under CGTMSE.
  2. New units are also eligible
  3. No need of financial statements for purpose of annual review of sanction.
  4. Loan Passbook will be issued to borrower.

Documents Required for SBI Weavers Credit Card Loan Scheme

  1. 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).
  2. Proof of residence - Recent telephone bill, electricity bill, property tax receipt/ passport/ Voter’s ID Card of proprietor, partner or Director (if a company).
  3. Proof of business address
  4. Proof of Minority
  5. Rent Agreement (if business premises on rent) and clearance from pollution control board if applicable.
  6. SSI registration if applicable.
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