(1) Area of operation of the Scheme To begin with, the scheme will be operative in the States of Gujarat and Maharashtra where our bank is having the largest network of branches, covering 500 villages / taluka centres which will be identified in collaboration with M/s. n-Logue Communications (P) Ltd. Branches to finance with in a radius of 25 K.Ms. The population of the village where the rural kiosk is proposed should be minimum 2000 and only one kiosk should be financed in a village to ensure financial viability. The Branch Manager should get himself / herself satisfied about the financial viability of the kiosk at the proposed centre.(2) Eligibility :
a.The applicant (Kiosk Operator) should be minimum 10th class passed having flair / interest to undertake the business of running and managing rural kiosk.
b.The applicant should be duly identified by the company and willing to undergo intensive training programme to be conducted by M/s n-logue Communications Pvt. Ltd.
c.The applicant should not be a defaulter to any Bank / Financial Institution.
d.The applicant should be above 18 years of age and not exceeding 45 years.
(3 ) Project Cost :
The total investment will be approximately Rs. 59,407/- (Say Rs. Fifty nine Thousand Four Hundred Seven only) for purchase of a PC with colour monitor and other hardware, software and other services provided by M/s n-Logue Communications Pvt. Ltd. No commission is payable by the Bank to M/s n-Logue Communications Pvt. Ltd. for services / role to be played in the implementation of the scheme.
(4 ) Quantum of loan :
(a) Under the tie-up arrangement with n-Logue the loan amount is restricted upto maximum limit of Rs. 50,000/- (Rupees FiftyThousands Only).
(b) Wherever subsidy is available under KVIC margin money scheme, the quantum of the loan may be reduced accordingly.
(5) Margin : 10% or the gap between project cost and Rs. 50,000/- whichever is higher.
(6) Rate of Interest :
The loans under the scheme will carry rate of interest @ BPLR + Tenor Premium - 2.25% (Currently 9.0 % per annum) or such rate as may be charged from time to time as per Bank’s discretion / RBI directives.
(7) Security :
a.Hypothecation of the Kiosk Kit and other movables to be financed under the scheme.
b.Branches should not demand any Collateral Security.
c.Branches should obtain Post dated cheques for the loan amount.
(8) Disbursement of Loan :
The entire loan amount alongwith the margin, contributed by the borrower to be paid through Demand Draft directly to the supplier i.e. M/s n-Logue Communications Pvt. Ltd..
(9) Repayment Period :
The loan is to be repaid in five years including moratorium of 6 months.The interest portion accruing on the loan amount for the period of first three months is to be capitalised and interest portion for 4th, 5th and 6th months to be serviced during the moratorium period. The loan amount and the capitalised interest to be recovered in 54 EMIs.
(10) Nature of facility : Term Loan.
(11) Profitability :
i. Branches should finance only one KIOSK in one village.
ii. Depending upon the size of the village population, branches should get satisfied about the viability of the KIOSK.
(12) Insurance :
The asset acquired with Bank finance to be fully covered under insurance with banks clause.
(13) Sanctioning Authority :
The loan under the scheme will be sanctioned by the delegatees as per Discretionary Powers vested under the head Term Commitments.
(14) Classification :
Loans sanctioned under the scheme would be classified as SSSBE ( Small Scale Service and Business Enterprises) under SSI segment within the priority sector. Product Code 97927) The loan will be covered under CGTSI(15) Other terms and conditions :
Documents / Papers to be obtained for scrutiny
i. Kiosk Operator Application form.
ii. Proof of education : The Mark Sheet of 10th std. or any higher education certificate duly verified with the original.
iii. Proof of residence : Ration Card, Passport, VAO certificate, voterlist.
iv. Quotation : n-Logue quote on letter head.
v. Identification proof :Passport size photo - 3 numbers
vi. Post Dated Cheques (PDC) : The Branch to obtain Post Dated Cheques.
vii. Usual documents of the bank to be executed by the borrower.
viii. M/s n-Logue will submit a ‘letter of undertaking’ in prescribed format.
ix. Prospective borrowers will submit their undeertaking - cum - authority letter in prescribed format.
x. M/s n-Logue company must submit a letter confirming to the Branch to the effect that it has ensured that all necessary clearances and statutory permissions have been obtained for setting up the rural Kiosks under this scheme.A copy of such clearances / permission duly authenticated will be kept on record.