Loan for starting Cyber Cafe/ PCO/ Xerox Machine/ FAX Machine/
Flour Mill/ Mini Rice Mill/ Pulses Mill/ Oil Mill
Purpose and Eligibility:
The main objective of the scheme is to provide employment to beneficiaries.
Beneficiary should be a graduate and reside in rural or town area.
The residence of the beneficiary and debt driven economic activity/ business/ shop/ should be in the working area of the related bank branch.
Loan Margin Amount and Interest Rate:
For Cyber Cafe beneficiary will get a maximum extent possible loan of the estimated unit cost of a unit.
The beneficiary will have to contribute 20% of the project cost and the rest 80% the Bank will provide as loan.
Interest Rate:
The interest rate on the sanctioned loan will be 11% annually. The interest will be calculated on monthly basis.
On non-payment of loans a penal interest of 2% will be payable annually, on the payable outstanding amount for the payable outstanding period.
Term of Loan:
Beneficiary will have to repay the loans in 5 years in the form of consolidated monthly installments.
In 5 years of loan repayment, 2 months will be considered grace period and payment will be collected in the form of 58 consolidated monthly installments.
Security:
Upto a credit limit of Rs 25,000.00/- no collateral security is needed but the beneficiary will have to present two proper individuals as guaranters which should be acceptable by the bank.
For credit limit of more than Rs 25,000.00/- a collateral security of one and a half times of loan amount is needed and two people as a guaranter. Only those property on which clear title and easily accessible on sale will be acceppted as collateral security.
Insurance:
Beneficiary will have to credit/ limit covering all risks under bankers clause, would be to insure collateral security, the expenses will be borne by the debtor.
**For more information please visit your nearest branch of District Co-Operative Bank Ltd Lucknow.