Syndicate Bank unveils scheme for small businesses

Manipal-based Syndicate Bank today launched a scheme aimed at financing small businesses and self-employed persons.

The bank, which introduced the country's earliest micro-finance innovation in the form of Pigmy Deposit Scheme way back in 1928 to extend doorstep banking, has introduced 'SyndSmallCredit', which provides financial assistance up to Rs 1.5 lakh, to small businessmen to meet their credit requirements, partly towards redemption of high cost private debt, with added doorstep banking facility, an official statement said.

The scheme is linked to the bank' s newly re-launched Pigmy Deposit scheme called 'Pigmy plus 2007'.

SyndSmallCredit provides flexibility to customers who can contribute to the Pigmy Plus 2007 account at varied levels of amounts as per convenience at their doorsteps, which can be ultimately appropriated towards the loan account.

With an in-built doorstep banking facility, the scheme is launched to help those engaged in manufacture of goods, retail traders, professionals and self-employed persons, artisans and also those engaged in handicrafts, village and cottage industries.

The customers have the choice of repayment holiday for the first three months and thereafter repay smaller installments in the beginning when the income level is low and gradually higher installments as the activity and income level improves.