LOANS TO BUSINESS CORRESPONDENTS

Parameters Features
Nature of Facility Overdraft (OD) / Demand Loan (DL) / Term Loan (TL)
Purpose To meet all kinds of Credit requirements relating to business (General purpose)
Target Group Kiosk operators / Customer Service Providers (CSPs) engaged by Business Correspondents of the Bank (one person per outlet)
Eligibility Criteria
  • Kiosk operators / CSPs between the age of 18-60 years who themselves have valid agreement BCs of the Banks for the purpose of providing Banking Services under Financial Inclusion and should be residing in his / her area of operations for more than 3 years. Further, the BC/CSP should be attached with Bank for at least 01 year.
Quantum of loan (Min/Max)
  • Min: Rs.25000/-
  • Max: Rs.2.50 lacs
  • (Amount Limit to be fixed at 6 times of the average commission earned during the last 12 months or max. of Rs. 2.50 lacs, whichever is lower.)
Margin (%) Nil
Pricing
  • One Year MCLR + 2.75%
Collateral Security
  • Nil. To be covered under Credit Guarantee Fund for Micro Units (CGFMU)
Repayment Period
  • • Overdraft: 12 months and to be reviewed every year
  • • Demand Loan: Maximum 36 EMIs with 1 month moratorium
  • • Term Loan: Maximum 60 EMIs with 1 month moratorium
Processing Fee
  • • Loans upto Rs. 50,000/-: Nil
  • • Loans > Rs. 50,000/-: 0.50%