New Delhi: HDFC Bank on Monday launched an overdraft facility for small retailers in partnership with CSC SPV known as the ‘Dukandar Overdraft Scheme’. The bank said that this facility will help shopkeepers and merchants ease their cash crunch.
Retailers operating for a minimum of three years can avail the overdraft facility by providing 6 months bank statement from any bank. Based on the statement, the bank may approve an overdraft limit from a minimum of Rs 50,000 to a maximum of Rs 10 lakhs. No collateral security, business financials and income tax returns would be required to apply for this facility.
Retailers, shopkeepers and village level entrepreneurs are eligible for this facility. The bank has simplified the process by minimizing paperwork and time required to avail of the scheme. The new scheme has been created keeping in mind the current situation of small traders. The upper limit for shops operational for less than 6 years is Rs 7.5 lakhs and Rs 10 lakh for establishments which have been in business for more than 6 years.
HDFC Bank overdraft scheme Programme Benefits for Retailers:
i) Collateral-free loan.
ii) No Commitment Charges.
HDFC Bank overdraft scheme Programme Benefits for VLEs:
Commission of 0.40% to 0.80% for loan amounts of Rs 5 Lakhs and above.
1700+ emerging enterprise group business channel
600+ branches and virtual relationship management support.
HDFC Bank overdraft scheme Eligibility Criteria:
i) Only proprietor & business partners can apply for the overdraft facility
ii) Six-month statement from any bank required
iii) Should be a customer of the bank of which statement is furnished, for a minimum 15 months
With the overdraft facility available through their Current Account, the account holder can settle the pending payments via cheques or pay-order in a trouble-free manner. This avoids a cheque dishonour and preserves the reputation of the business owner.