Allahabad provides a unique financial service for the sole benefit of small and medium enterprises under MSME Banking. One among its ventures to assist individuals falling under this category and extend required credit to them, is the Allahabad Bank Artisan Credit Card (ACC) scheme. It provides credit to make up for Working Capital for the purchase of equipment, raw materials, etc. and also provides loan against this credit card for the purpose of buying necessary items to assist the production process.
The Allahabad Bank Artisan Credit Card (ACC) scheme provides credit to the cardholder for the purchase of equipment, raw materials, etc.
The credit cardholder can avail a term loan against the Allahabad Bank Artisan Credit Card (ACC) under this scheme for financing the purchase of tools and equipment to enable the process of production.
The maximum loan amount that can be availed by an eligible applicant is Rs 2,00,000 as either working capital or as Term Loan.
A 20% loan margin is provided for Working Capital and for Term Loan, a minimum of 10% of the project cost is set as loan margin.
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 availing 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.
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.
In order to avail this credit card and its accompanying benefits, an applicant must meet the following pre-requisites set by the Bank:
|Rate of interest||Interest rate is determined based on the borrower’s profile and is usually calculated as Base Rate or Base Rate + 1.50% p.a., with monthly rests, depending also on the risk rating of the borrower’s account.|
|Maximum loan amount||Rs. 2 lakh|
The repayment period will be specified by the Bank, for credit availed towards working capital on the Allahabad Bank Artisan Credit Card (ACC). This is open for yearly reviews by the bank.
The Allahabad Bank Artisan Credit Card (ACC) is valid for up to 3 years.
The tenure of the term loan taken against the Allahabad Bank Artisan Credit Card (ACC) can range from 5 years to 7 years.
You can apply for an Allahabad Bank Artisan Credit Card from any branch of the bank.