HDFC Bank, the largest private sector bank, has launched a new scheme for small retailers. However under this, small shopkeepers can take overdraft facility up to Rs 10 lakh on the basis of 6 months bank statement. For this, it has partnered with CSC SPV.
The bank said in a statement that this scheme has been named Shopkeeper Overdraft Scheme. With this facility, small shopkeepers and merchants will get benefits in the time of their cash crunch. This facility will be available to those retailers who have been running the business for at least 3 years. Based on the statement of 6 months, the bank can sanction an overdraft limit of a minimum of 50 thousand and a maximum of 10 lakh rupees.
The bank said that no guarantee or security is required for this. Nor will it require business financial and income tax returns. The bank said that retailers, shopkeepers, and village entrepreneurs would be eligible for this facility. The bank has also kept at least paperwork for its process. This facility will be given in a short time.
The new scheme has been launched to help small shopkeepers. Shopkeepers who have completed less than 6 years will get a facility of Rs 7.5 lakh. Those who are in business for more than 6 years, will get a 10 lakh facility. For this, the bank will have more than 600 branches and virtual relationship management support.
The bank said that only proprietors and business partners can apply for this. In this regard, the Bank's Government and Institutional Business Head Smita Bhagat said that for the last one year, the global economy is going through a bad environment due to Kovid-19. Small shopkeepers have been affected more in this environment. HDFC Bank in association with CSC has launched this initiative.
Earlier, the Reserve Bank had said that banks can allow a small amount of overdraft facility at the branch manager level. Especially those customers who have a satisfactory past history. This facility was for the current account holders.
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