Allahabad Bank was established in India on 24th April, 1865 and it is one of the oldest Joint Stock Banks in India. It focuses on key areas such as Trade, Organized industry and Banking. Allahabad Bank was nationalized in the year 1969 and it currently has around 151 bank branches across India. This Bank has had various achievements and milestones in its century’s old existence in India, and one among them being the formation of its subsidiary AllBank Finance Ltd. in 1991.
Allahabad Bank places great priority in Micro Small and Medium Enterprise (MSME) Banking and offers credit facilities to artisans, weavers, and other workers involved in allied activities so that they can achieve economic growth. One among its many schemes aimed towards this goal is the credit card schemes such as Allahabad Bank Laghu Udhyami Credit Card (LUCC), Allahabad Bank Weavers Credit Card (WCC) and Allahabad Bank Artisan Credit Card (ACC).
Allahabad Bank Credit Cards aims at providing credit back-up for weaker sections of society who fall under the category of Micro Small and Medium Enterprise (MSME). Through its unique credit card schemes, the bank aims to provide a host of benefits to artisans, weavers, and those involved in Retail Trade and Small Business, Self-employed and Professionals, Micro & Small Enterprises, etc. It offers credit to support working capital, purchase of equipment and raw material, etc. and also offers loan against these credit cards to meet their immediate cash requirements.
Allahabad Bank Artisan Credit Card (ACC) provides a loan margin of 20% for Working Capital and a 10% loan margin for project cost. Allahabad Bank Laghu Udhyami Credit Card (LUCC) scheme provides a loan margin of 25% and Allahabad Bank Weavers Credit Card offers a loan margin of 20% for an amount worth more than Rs. 25,000 and no margin is placed on an amount less than Rs. 25000.0
The maximum loan amount that can be availed under the Allahabad Bank Artisan Credit Card (ACC) scheme and the Allahabad Bank Weavers Credit Card scheme is Rs 2,00,000. Under the Allahabad Bank Laghu Udhyami Credit Card (LUCC) scheme the maximum loan amount that can be availed for Retail Trade and Small Businesses is 20% of the annual turnover, for Self-employed and Professionals it is 50% of their gross annual income and for Micro & Small Enterprises the maximum loan amount is determined by the Bank based on the recommendations of the Nayak Committee.
The Bank has to be provided a security/collateral and this will be determined according to the borrower’s profile, the loan amount he/she has applied for, etc. and it is subject to the guidelines set by the Government of India.
The primary security that has to be provided for availing credit for working capital is the hypothecation of current assets including book debts, stocks, etc. If the cardholder wishes to avail a term loan under this scheme, the primary security that has to be pledged with the bank is the hypothecation of their assets like plant and machinery, which was purchased using the financial assistance offered by the Bank.
Eligible individuals can apply for an Allahabad Bank Credit Card from any semi-urban and rural branches of Allahabad Bank.s
|Charge||Allahabad Bank Weavers Credit Card (WCC)||Allahabad Bank Laghu Udhyami Credit Card (LUCC)||Allahabad Bank Artisan Credit Card (ACC)|
|Interest Rate||Base Rate or Base Rate + 1.50% p.a.||Base Rate or BR+5.00% p.a.||Base Rate or Base Rate + 1.50% p.a.|
|Maximum Loan Amount||Rs 2,00,000||
Retail Trade and Small Business - 20% of the annual turnover
Self-employed and Professionals - 50% of their gross annual income
Micro & Small Enterprises - as per the recommendations of the Nayak Committee
The eligibility criteria for each credit card offered by Allahabad Bank is as follows:
Allahabad Bank Artisan Credit Card (ACC):
In order to be eligible for the Allahabad Bank Artisan Credit Card (ACC):
Allahabad Bank Weavers Credit Card:
Allahabad Bank Laghu Udhyami Credit Card (LUCC):
Those who are eligible to avail the Allahabad Bank Laghu Udhyami Credit Card (LUCC) are: Existing customers of the Bank who fall under the category of Industries, Services & Business (ISB) sector who have a credit history with the bank. They should have a good transaction record with the Bank for at least three years (latest) and must hold a credit limit of maximum Rs. 10 lakh.
The repayment period will be specified by the Bank, for credit availed towards working capital on the Allahabad Bank credit cards. This is open for yearly reviews by the bank.
The validity of the credit cards offered by Allahabad Bank is 3 years. However, it is advised to check with a representative of the bank by contacting their customer care number.
The tenure of the term loan taken against the Allahabad Bank credit cards can range from 5 years to 7 years.
You can apply for any of the Allahabad Bank credit cards from any branch of the bank.
There is no minimum balance for a credit card by Allahabad Bank. However, the maximum limit for the credit card will be decided by the bank depending on many factors such as the credit score of the applicant, the repayment habits of past debts, etc.
No, to process the applications and the documents submitted by the applicant and verify them, it takes a certain amount of time by the bank. Once the form is submitted along with the documents, it can take up to 7 working days for the credit card to be sent to your registered address.
You can apply for a credit card from Allahabad Bank either by visiting the nearest branch of the bank and request to apply for a card. A form is required to be filled out by the applicant and a representative of the bank will help you in the process of filing of the form.
Yes, to apply for a credit card from Allahabad Bank online, the applicant must hold a savings or salary account from the bank as well. Apart from this, an application form must be filled out by the applicant which contains details such as Aadhaar number, PAN, date of birth, Passport details, etc.
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