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HDFC Bank launches overdraft facility for merchants
July 27, 2021
India’s largest private lender HDFC Bank on Monday launched an overdraft office for small retailers in organization with the public authority’s e-governance service delivery arm CSC SPV that enables government plans and services through common service centres (CSCs).
The ‘Dukandar Overdraft Scheme’ by HDFC Bank is pointed toward helping shopkeepers and merchants & ease their cash crunch. As indicated by the bank, retailers operating for less than three years are eligible for the scheme by giving a half year bank statement from any bank.
HDFC Bank will approve an overdraft limit from at least ₹50,000 to a limit of ₹10 lakhs based on the statements. Significantly, HDFC Bank will not look for collateral security, business financials, and income tax returns from retailers who apply for the scheme.
“The new scheme has been made remembering the current circumstance of small traders. As far as possible for shops operational for under 6 years is ₹7.5 lakhs and ₹10 lakh for establishments which have been doing business for over 6 years,” HDFC Bank said in a statement.
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