Dukandar Overdraft Scheme: The purpose of ‘Dukandar Overdraft Scheme’ by HDFC Bank is to help shopkeepers and traders to reduce their cash crunch.
India’s largest private lender HDFC Bank in partnership with CSC SPV, the e-governance service delivery arm of the government, launched an overdraft facility for small retailers. The purpose of ‘Dukandar Overdraft Scheme’ by HDFC Bank is to help shopkeepers and merchants to reduce their cash crunch. According to the bank, retailers working for at least three years can take advantage of this scheme by giving six months bank statement from any bank.
HDFC will allow overdrafts up to a minimum of Rs 50,000 and a maximum of Rs 10 lakh based on bank statements. HDFC Bank will not ask for collateral security, business financials and income tax returns from retailers applying for this scheme.
HDFC Bank said in a statement, the new scheme has been made keeping in mind the current situation of small traders. The upper limit for shops running less than 6 years is Rs 7.5 lakh and for establishments Rs 10 lakh. The scheme is for Village Level Entrepreneurs (VLEs) with more than 600 branches and Virtual Relationship Management support. A commission of 0.40 per cent to 0.80 per cent is available on loan amount of Rs 5 lakh and above.
They can take advantage of the scheme
Under this scheme, only the proprietor of the shop or business can avail the facility of overdraft. To take advantage of the scheme, it is necessary to have a bank statement of at least 6 months. The bank whose statement the shopkeeper will provide should be his customer for at least 15 months.
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