ALLAHABAD BANK LAGHU UDHYAMI CREDIT CARD (LUCC) SCHEME
- Working Capital : for purchase of raw materials etc.
- Term Loan : for purchase of tools and equipment for carrying out production process.
- All existing borrowers under Industries, Services & Business (ISB) sector having satisfactory conduct / dealing with the Bank for the last three years and enjoying credit limit up to Rs 10.00 lac.
Loan Limit :
- For Small Business, Retail Trade etc: 20% of the annual turnover declared for tax purposes OR for last 12 months turnover in the operative account, whichever is higher.
- For Professional & Self – employed persons:- 50% of their gross annual income as per Income Tax Return.
- For Micro & Small Enterprises: As per Nayak Committee recommendations.
Rate of Interest:
- Rate of interest depends on the profile of the proposed Borrower and varies between Base Rate to BR+5.00% p.a. with monthly rests as per risk rating of account
- Working Capital : Hypothecation of Stocks, Book debts and other current assets.
- Term Loan : Hypothecation of plant & machinery and assets financed by the Bank.
- Depends upon the profile of the Borrower and loan amount subject to Government of India guidelines.
- Working Capita : On demand subject to review every year.
- The LUCC card issued is valid for 3 years.
- Term Loan : 5 to 7 years.