Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
As a part of its MSME (Micro, Small & Medium Enterprises) Banking scheme, Allahabad Bank has introduced the Allahabad Bank Weavers Credit Card (WCC) for the benefit of all weavers and other small-scale ancillary workers. Also, those who are a part of groups/ institutions such as SHGs/ Societies/Consortia/Joint Liability Groups/ Producer Companies, etc. can avail credit under this scheme, to purchase assets such as plants and machinery and more.
Based on the working capital requirements of the applicant the credit limit will be determined by the Bank. The Bank will evaluate the application and determine the cost of equipment and other tools that are required to carry out the activity of weaving and finalize the requisite amount of credit that will be disbursed to the applicant. The maximum credit limit available to applicants who avail the Allahabad Bank Weavers Credit Card, is Rs 2,00,000.
The loan margin set by the bank is 20% for an amount worth more than Rs. 25,000. For an amount worth less than Rs. 25000 there is no loan margin.
In terms of working capital the applicant can place a security of Book debts, Stocks, and any other current assets by hypothecating the same.
In case you are availing a Term Loan under this scheme, then the assets including plant & machinery which the Bank has helped purchase, can be hypothecated in the Bank’s name. The security collateral that is placed is coverage under CGTMSE.
The repayment on credit on working capital will be stated by the Bank and is subject to review each year. This credit card is issued for a 3 year period. Tenure on the term loan on this credit card ranges from 5 years to 7 years.
Eligible individuals can apply for an Allahabad Bank Weavers Credit Card (WCC) from any semi-urban and rural branches of Allahabad Bank.
The Allahabad Bank Weavers Credit Card is available to the following applicants only:
The Allahabad Bank Weavers Credit Card (WCC) that is issued to an applicant, has a validity of 3 years.
You can apply for an Allahabad Bank Weavers Credit Card (WCC) from any semi-urban and rural branches of Allahabad Bank.
Yes, stocks and other current assets can be placed as security in the Bank, in exchange for credit.
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