To increase flow of credit to individuals for entrepreneurial activity in the non-farm sector provided through the General Credit Card (GCC). The credit is eligible for classification under the priority sector guidelines
All non-farm entrepreneurial credit extended to individuals. The circularized KYC / due diligence norms will applicable for deciding eligible beneficiaries under the revised GCC scheme.
With a view to bring the women beneficiaries under the fold of bank credit, a preferential treatment may be given to women under the revised GCC scheme.
Loan Limit :
Maximum Rs.25000/- per borrower.
Term Loan : Cost of plant & machineries/ Equipments
Cash Credit : Upto 20% of projected sales turnover. However, in case of borrower applying for working capital limit higher or lower than the working capital computed on the basis of turnover method shall be assessed as per actual requirement.
Term Loan: Hypothecation of Plant & machinery and entire movable assets of the unit (Present & Future).
Cash Credit: Hypothecation of stocks & book debt and other current assets (Present & Future).
No Collateral security will be required. However, the eligible account will be covered under CGTMSE coverage.
Door to door tenure of term loan will be 60 months.
Term Loan will be repaid in 42-54 equal monthly principal installments & interest will be repaid as and when due. Repayment schedule should be fixed taking into account the sustenance requirements, surplus generating capacity, the breakeven point, the life of the asset, etc., and not in an “ad hoc” manner.
Term Loan : 5 to 7 years
From 6 to 18 months (depending on requirement of the project)