Allahabad Bank Laghu Udhyami Credit Card

The Allahabad Bank Laghu Udhyami Credit Card (LUCC) is offered to borrowers as working capital to finance the purchase of equipment, raw materials, and so on. The credit cardholder can also avail a loan against his/her credit card for the purpose of purchasing all necessary things to assist the process of production. With the Allahabad Bank Laghu Udhyami Credit Card (LUCC) Scheme, cardholders can also avail a loan from the purpose of improving their annual turnover.

Features of Allahabad Bank Laghu Udhyami Credit Card (LUCC) Scheme

• Loan Quantum:
  1. Retail Trade and Small Business: The loan quantum offered for Retail Trade and Small Business, etc. are up to 20% of the annual turnover that has been declared by them for the purpose of income tax or they can also provide the details of the turnover of the latest 12 months available in the operative account, whichever is the highest.
  2. Self-employed and Professional individuals: The loan quantum offered for Self-employed and Professional individuals is up to 50% of their gross annual income as stated in the applicant’s IT Return.
  3. Micro & Small Enterprises: The loan quantum offered for Micro & Small Enterprises will be determined by the recommendations of the Nayak Committee.
• Loan Margin:

  The percentage of loan margin available on the Allahabad Bank Laghu Udhyami Credit Card (LUCC) scheme is 25%.

• Primary Security:

  The primary security in terms of working capital can be the hypothecation of book debts, stocks, current assets, etc. The primary security that has to be pledged with the bank for availing a term loan under this scheme, is the hypothecation of assets such as plant and machinery, that has been purchased using the finance provided by Allahabad Bank.

• Security Collateral:

  The security/collateral that has to be placed in the Bank will be determined based on the borrower’s profile, amount of loan he/she has applied for, etc and it also has to meet the guidelines set by the Government of India.

Benefits of Allahabad Bank Laghu Udhyami Credit Card

• Working Capital:

  The Allahabad Bank Laghu Udhyami Credit Card (LUCC) scheme provides credit to the cardholder for the purchase of equipment, raw materials, and more.

• Term Loan:

  The credit cardholder can avail a term loan against the Laghu Udhyami Credit Card under this scheme for financing the purchase of tools and equipment that assists the process of production.

Fees and Charges for Allahabad Bank Laghu Udhyami Credit Card

FAQs on Allahabad Bank Laghu Udhyami Credit Card

1. What is the repayment period for working capital?

   The repayment period for credit taken for working capital will be specified by the Bank. This is subject to yearly reviews.

2. What is the validity of this credit card?

   The Allahabad Bank Laghu Udhyami Credit Card is valid for up to 3 years.

3. What is the tenure for which you can take a term loan against this credit card?

   The tenure of the term loan taken against the Allahabad Bank Laghu Udhyami Credit Card can be anywhere from 5 years to 7 years.

4. Where can I apply for Allahabad Bank Laghu Udhyami Credit Card?

   You can apply for an Allahabad Bank Laghu Udhyami Credit Card from any branch of the bank.