WEAVER’S CREDIT CARD (WMS) - Agri & Rural

Features

• Beneficiaries : Weavers and ancillary workers involved in weaving activities in the handloom sector.
• Purpose : For working capital requirements as well as purchase of tools and equipment required for carrying out weaving activity.
• Loan Quantum : Minimum Rs.50,000/- Maximum Rs. 200000/- for Individual handloom weaver/ Weaver Entrepreneur and for Handloom organization/ Entity borrowers Maximum Rs. 2.00 Crores (However, Loan up to Rs.10 Lac will be reported under Mudra loan).
• Margin :  20% of the loan amount
• Assessment of Limit
  • Working capital based on turnover method i.e. Bank finance will be 20% of turnover and 5% of turnover will be borrower’s margin.
  • Term loan to be assessed based on project cost and invoices, therefore.
  • (Loan up to Rs.10 Lac-For the purpose of assessing eligibility, Mudra Scoring model as per Circular no. NBG/SMEBU-PMMY/28/2019-20 dated 24.07.2019 to be used).
  • Other than Individual Borrower-As per Bank Norms
• ROI
  • Present effective rate = 9.15%+3.25% = 12.40% (w.e.f. 15.02.2023) for Individual Customers
  • EBLR + 3.25% =12.15 w.ef 15.02.2025
• Issue of Card : Mudra Ru-pay card to be issued for working capital loan and all working capital will be paid through Mudra Rupay card (Max-Rs.10 Lac). Term loans will be disbursed in supplier’s account.
• Security
  • Primary: Hypothecation of Assets financed by the Bank
  • Collateral: The accounts will be covered under CGTMSE guarantee scheme. Ministry of Textiles has developed a portal for facilitating appropriation of Margin, Interest, Credit Guarantee fee and subsidy to the account of the beneficiary. Branches are not required to pay premium amount for guarantee coverage either by debiting the customers’ account or Bank’s account.
  • Other than individual borrowers- Primary/collateral security will be taken as per Bank’s norm. Applicable Charges to be recovered.
  • Loan up to Rs.10 Lac to be reported under Mudra and hence no collateral to be insisted.