United Bank of India Laghu Udhyami Credit Card helps small businesses, artisans, retail traders, small scale industries, village industries, professionals, self- employed individuals, etc. by providing them with money on credit as working capital. They can use this money for purchasing raw materials, equipment, etc. for their businesses. They can also avail a loan of up to Rs.10 Lakhs at very competitive rates of interest under this scheme, which has to be repaid to the bank within a fixed period of time.
Features and Benefits of United Bank of India Laghu Udhyami Credit Card:
- Loan Availability – Through the United Bank of India Laghu Udhyami Credit Card, small businesses, artisans, traders, small scale industries, village industries, self- employed individuals, professionals, etc. can avail Term Loan and credit to invest in Working Capital
- Coverage – United Bank of India Laghu Udhyami Credit Card covers the whole of India
- Limit on Loan – The maximum limit on this loan is up to Rs.10, 00, 000 and is considered as Cash Credit or Term Loan or Overdraft Limit
- Interest Rate – The interest rate on United Bank of India Laghu Udhyami Credit Card is very affordable
- Credit Card Limit – The limit on United Bank of India Laghu Udhyami Credit Card is as follows-
- For Retail Traders and Small Businesses –
- The credit limit is 20 percent of the Annual Turnover declared for the purpose of tax or 20 percent of the turnover for the last 1 year in the account operative with United Bank of India (whichever has the higher value)
- Customers who do not have the Sales Tax returns information available, the limit for them will be decided based on their actual turnover in the last 2 years in their account
- For Self Employed Individuals and Professionals – The credit limit is 50 percent of the applicant’s gross annual income as mentioned in their Income Tax return statement
- For Small Scale Industries – The limit is decided based on the Nayak Committee’s recommendations. The Working Capital Limit is 20% of the expected annual turnover with the maximum amount being Rs.10, 00, 000
- Margin on Loan – The margin on loan is 25 percent of the credit facility
- Existing borrowers of the bank are eligible to apply
- Customers who have been dealing with United Bank of India for the last 3 years are eligible
- Customers who have a limit of up to Rs.10, 00, 000 on their working capital loan are eligible
To get more information about the eligibility criteria, please contact United Bank of India.
Fees and Charges:
|Maximum Loan Amount
||Rs.10, 00, 000
|Margin on Loan
||25 percent of the credit limit
United Bank Laghu Udhyami Credit Card FAQs:
- Does the United Bank of India Laghu Udhyami Credit Card require a security?
Yes, the United Bank of India Laghu Udhyami Credit Card requires a security.
- For Primary Security –
Hypothecation of the following is required -
- Stock in trade
- Office Equipment
- For Collateral Security –
The bank may choose to retain the existing securities of the borrower depending on his or her past records. The bank can also choose to waive of this security which was taken by them for the existing advance of the borrower
- The bank can choose to not take collateral security from Small Businesses and Small Scale Industries, who have had excellent banking records for the past 3 years, provided they are covered under the Credit Guarantee Fund Trust for Small Industries.
- For how long is the limit on United Bank of India Laghu Udhyami Credit Card valid?
The limit on United Bank of India Laghu Udhyami Credit Card is valid for 3 years and depends on the performance of the account determined during the annual review.
- In how much time do I have to repay the term loan?
You have to repay the term loan in a period of 3 years.
- Do I have to submit any financial statements to the bank?
You have to submit the financial statements every year to the bank only if you renew a limit of more than Rs.2, 00, 000. If the renewal limit is up to Rs.2, 00, 000, then you do not have to provide any financial statements.
- Will the bank provide a cheque book with the United Bank of India Laghu Udhyami Credit Card?
Yes, the bank will provide a cheque book with the United Bank of India Laghu Udhyami Credit Card.