As a part of its MSME Banking venture corporation bank offers the Corporation Artisans Credit Card to artisans, especially those who are registered with Development Commissioner of Handicrafts, so that they can avail the Credit facility to meet their working capital needs and to acquire equipment’s and tools needed for completion of their work.
A minimum amount worth up to 20% of the projected annual turnover is offered to the eligible applicant as working capital. This will be based on the recommendation given by the Nayak committee.
The term loan taken against this credit card can be repaid within a maximum duration of 3 years. The Bank will renew the Working capital offered to the card holder based on an annual review. There is no need to submit financial statements or stocks. Additional charges are not applicable on the annual review and subsequent renewal of the credit card.
The security to be pledged with the Bank is the hypothecation of all assets that have been created out of the loan taken against the Corporate Artisans Credit Card. Insurance coverage is available on these credit card accounts, under the CGFSI guarantee scheme.
The maximum loan amount offered to an Artisan under this credit card scheme is Rs. 2 lakhs.
The Corporation Artisans Credit Card is offered to all artisans. Priority is given to artisans who are registered under the list maintained by the Development Commissioner of Handicrafts. Those artisans who are gathered together under Self Help Groups and other clusters are also considered under this scheme. If the applicant has availed any benefits under any Government sponsored scheme, they are not eligible for the Corporation Artisans Credit Card.
The Validity period of the Corporation Artisans Credit Card is up to 3 years.
There is no loan margin applicable on loans worth not more than Rs. 25,000.
Insurance coverage is available on these credit card accounts, under the CGFSI guarantee scheme. If the artisan is registered under the list maintained by the Development Commissioner of Handicrafts, they he/she is eligible for insurance coverage with the aid of the Indian Government on a cost sharing basis. The ratio of cost sharing between the government and the artisan would be 60:40.
The maximum repayment tenure available to a Corporation Artisans Credit Card holder is 3 years.
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