The Samastipur District Central Co-operative Bank in Bihar offers Cash Credit Mudra loans under the Pradhan Mantri Mudra Yojana (PMMY). This scheme aims to provide financial assistance up to ₹10 lakh to non-corporate, non-farm small and micro enterprises involved in income-generating activities in manufacturing, trading, and services, including allied agricultural activities.
Key features of the Cash Credit Mudra loan from this bank:
- Loan Amount: Up to ₹10 lakh. Loans are categorized under Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh).
- Purpose: To meet working capital requirements or for acquiring capital assets for small businesses. A Cash Credit Card (RuPay debit card) is also provided for flexible access to working capital.
- Eligibility: Individuals, proprietary concerns, partnership firms, private and public limited companies, and other legal entities are eligible, 1 provided they are not defaulters with any bank or financial institution and have a satisfactory credit record.
- Margin: Nil for loans up to ₹50,000. For loans above ₹50,000, a 25% margin may be applicable as per the bank's policy and RBI guidelines.
- Interest Rate: 12% per annum, or as per the bank's policy decisions, ensuring it is reasonable for the borrowers.
- Security: Hypothecation of assets created from the loan. For loans above ₹10 lakh, a third-party guarantee and collateral security of at least 60% of the loan amount may be required. Collateral is generally not required for loans up to ₹10 lakh as per RBI guidelines for MSEs.
- Processing Charges: May be applicable as per the bank's internal guidelines, but often waived for Shishu loans.
Benefits of Cash Credit Mudra Loan:
- Provides access to credit for micro and small enterprises.
- Offers financial flexibility for managing working capital.
- Supports income-generating activities and potential business growth.
- No collateral required for loans up to ₹10 lakh.
