Laghu Udhyog Vyapar refers to credit facilities provided to Small Scale Industries (SSI) and small business enterprises involved in manufacturing or trading. These loans are designed to support the Micro, Small, and Medium Enterprises (MSME) sector by providing capital for fixed assets (like machinery) or working capital (for stock and raw materials). The goal is to promote self-employment and local economic development by offering accessible and affordable formal banking credit to small-scale business owners.
Key Features:
- Quick appraisal, Fast disbursement for loan upto Rs.20 Lacs to small borrowers.
- 125% collateral security is required upto loan / OD of Rs. 15 Lacs.
- 150% collateral security is required above loan / OD of Rs. 15 Lacs.
- Loan for 180 months, CC / OD facility is also available.
- Yearly stock statement is required upto CC of Rs.20 Lacs and quarterly is required above Rs.20 Lacs to Rs.30 Lacs.
- No ITR, Balancesheet / P&L required per small applicants upto Rs.20 Lacs.
- Sanctioning power is at branch level.
