(A new Scheme for providing financial assistance to entrepreneurs of small means contributing to 'Pigmy 1928 and to "Pigmy Plus 2007"- Doorstep banking)
Highlights of the Scheme:
- The scheme aims at entrepreneurs of small means such as manufacturers, retail traders, professional & self-employed persons, artisans and those engaged in making handicrafts, village / cottage industries & other non-farm income generating activities.
- Facility available at all our branches where "Pigmy" scheme is in operation, in clusters of not less than 20 accounts in an area
- Need based credit of above Rs.25,000/- subject to a maximum of Rs.2.00 lac per borrower. A component upto 30% of the total limit is included for necessities like consumption / contingencies and repayment of high cost private debt
- No collateral security. Only hypothecation of assets created out of bank loan, lien on "Pigmy" account and a credit worthy third party guarantee. No third party guarantee in respect of loans extended to Micro and Small Enterprises
- Easy repayment at the convenience of the borrowers. The repayment is linked to day to-day contributions towards "Pigmy" account, at the doorsteps of the customer
- Contributions towards pigmy can be at the convenience of the customer. It is not fixed
- Ballooning of Equated Monthly Instalments (EMIs) facilitating the customer to repay smaller instalments in the beginning when the income level is low and gradually higher instalments by the time the income level gets improved. Repayment period spread over 60 months. First 3 months is the repayment holiday
- Excepting for execution of documents at branch level, doorstep-banking facility is extended to the customer through Pigmy Agents.
- The rate of interest is at PLR-0.50%
- 1.0% rebate in interest for prompt repayment to be provided at the closure of the account
- The Bank collects nominal out of pocket expenses @ 3% of amount set for transferring from "Pigmy" to the loan account, which includes payment of 2% commission to pigmy agents
- A step towards comprehensive and wholesome financial inclusion
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