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 Objective |
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To provide Term loans for purchase of Power Tools and need based working capital to the following:
- Carpenters and Wood Workers
- Electrician for Servicing & repairs
- Plumbers for sanitary servicing & repairs
- Auto-Mechanics for servicing & repairs
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| Eligibility |
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All artisans and self employed persons who are engaged in the field of Carpentry & wood works, servicing & repairs of automobiles, electrical and sanitary servicing
- Preference will be given to the successful trainees who have undergone training in the prescribed disciplines at AB Rural Development institutes; Andhra Bank sponsored EDPs conducted by Industry associations.
- Clusters of artisans/ self employed persons who have joined to form Self Help Groups.
- Beneficiaries identified under Central and State Government self employment schemes.
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| Nature and quantum of loan |
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Financial assistance is by way of Composite loan. Maximum loan amount is Rs.1 lakh or as per the actual requirement
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| Margin |
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10% |
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| Security |
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Hypothecation of Tool Kits/Stock in Trade
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| Collateral Security & Third party Guarantee |
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Not required
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| Repayment |
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Repayable in 3-5 years in appropriate EMI with 6 months repayment holiday. |
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| Rate of interest* |
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9.50%
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| Guarantee |
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The loans are covered under CGTMSE Scheme. Guarantee fee of 1.00% and Annual Service fees of 0.50% has to be borne by the borrower
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| Quantum |
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20% of the existing fund based limit
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| Margin |
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Same as existing margins to present working capital limits
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| Co-obligation/ Guarantee |
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Continuation of existing Co-obligation/Guarantee
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| Security |
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Primary: Stocks and receivables
Collateral: Continuation of existing collateral securities
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| Repayment |
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One year with a provision of moratorium of six months, during which only interest will have to be serviced
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