Scheme features & terms
Short term financing, for a period not exceeding six months, towards additional working capital needed to increase inventory during peak seasons or special occasions.
Provided only to existing business establishments with stability and standing.
Maximum assistance is usually Rs 2 lakhs, going up to Rs 3 lakhs in exceptional cases, assessed on the cost of additional stock and not exceeding 70% of that cost.
The application must include the latest cost of stock held, monthly sales for the preceding six months, and the additional monthly sales expected during the assistance.
Primary security is pledge/hypothecation of business assets, with collateral or the personal surety of the member and two other members.
With each repayment instalment the member pays a proportionate share of gross profit on the additional monthly sales stated in the application.
Stock is insured at cost price in the joint names of Sanghamam and the member.