Petty Traders Policy | TSCAB
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Loans, Savings

Petty Traders Policy

Preamble

As part of diversification of loaning portfolio, the Bank contemplates to introduce financing Small, Micro and Petty Traders and Street Vendors/ Business outlets operating in the service areas of the branches (to be restricted to those located in the near vicinity of the Branch).

Activities eligible for finance
  • Street Vendors / Hawkers
  • Small Kiosks
  • Tiffin Centers
  • Mobile Sellers
  • Vegetable vendors
  • Tailoring Units
  • Beauty Parlours/ Saloons
  • Repairing Centers
  • Photo Studios
  • Carpenters
  • Welding Units
  • Other self-employment activities

Borrowers Spread

Since the scheme is being implemented for the first time, Borrowers Spread may initially be confined to those introduced by our staff members, valued customers who have at least 3 years of relationship with us and their families & friends, so as to ensure credit worthiness of the prospective borrower and prompt repayment of loan. Borrowers will be considered for extending credit facility subject to satisfaction of the Branch Manager about the identity of the customers and their purpose of borrowing.

Quantum / Volume of finance

Depending upon the business activity/repayment capacity of the borrower, credit can be provided to a maximum extent of Rs.1.00 lakh per borrower.

Units with active existence for 1 year and above shall only be considered for providing credit facility.

Branch Manager is the competent authority to consider, sanction and disburse loans under this scheme.

Repayment Period

Repayment shall be insisted on daily basis. A remittance equal to 50% of daily repayment amount into Savings Account is mandatory. At the end of the month, the entire amount will be adjusted to the loan account towards repayment.

Up to Rs.50,000/- maximum repayment tenure will be 18 months only.

Above Rs.50,000/- to Rs.1,00,000/- maximum repayment tenure will be 36 months only.

Rate of Interest

Interest shall be charged @15% per annum with monthly rests.

2% penal interest will be charged on overdue instalments.

Disbursement

Branch Managers shall ensure recovery of installments.

Verification of the borrower’s business activity must be done by the Branch Manager/Second Manager/ Senior Staff Assistant.

Loan amount will be disbursed directly to the borrower’s Savings Bank account at the Branch concerned.

SMS alerts shall be made for all the transactions made by the account holders.

Security One employee surety with minimum service of 2 years in existing organization /Gold ornaments/ FD receipts of TSCAB.

One of the above will be obtained as security for the loan.

The Branch Manager should satisfy himself about the employment of the surety and the possibility of recovery in case of non-repayment by the borrower.

Documentation

Applications in the standard format prescribed and supplied by Head Office shall only be used for the purpose.

Borrower’s self-declaration regarding his/her monthly income should be obtained in the prescribed format.

The applicant shall have to provide agreement, Demand Promissory note, Surety bond wherever necessary. Copy of Aadhar card and other documents related to security shall be enclosed along with the application form.

Before sanctioning of loan, applicant shall be enrolled as B class / Nominal member of the Bank by paying Rs.10/- towards Admission fee and Rs.100/- towards Nominal Share Capital. Processing fee @ 0.5% of sanctioned amount shall be charged.