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 ‘Dukandar Overdraft Scheme’ by HDFC Bank aims to help shopkeepers and merchants to ease 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 offers a commission of 0.40 per cent to 0.80 per cent for loan amounts of Rs 5 lakh and above for Village Level Entrepreneurs (VLEs) along with over 600 branches and Virtual Relationship Management support.
The bank has named this scheme as Shopkeeper Overdraft Scheme. Customers facing cash crunch will get the benefit of this facility.
Which customers will get the benefit of the
shopkeeper overdraft scheme, those retailers whose business is running for at least the last 3 years. Under this facility, you can take advantage of cash of minimum 50,000 and maximum Rs 10 lakh. The bank said that retailers, shopkeepers and entrepreneurs from villages can take advantage of this facility.
This facility will be available without guarantee.
The most important thing about this scheme is that the customer will not have to show any kind of security or guarantee to the bank. Along with this, there will be no need for business financial and income tax returns to take advantage of this scheme.
less paperwork required
Along with this, you will not even need to do a lot of paper work to take this scheme. The bank has also kept minimum paper work for its process, so that this facility can be given to the customers in less time
Who will get how much overdraft-
- Shopkeepers doing business for less than 6 years will get an overdraft of Rs 7.5 lakh
- Those customers who are doing business for more than 6 years, those people will get the facility of overdraft of Rs 10 lakh.
- Will support more than 600 branches and virtual relationship management of the bank
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