The Laghu Udyami Credit Card is devised to address the credit needs of different sectors. The Laghu Udyami Credit Card is available through the bank’s MSME section, which primarily caters to the needs of medium-sized businesses. If you are working in the MSME sector or are a business unit or an artisan searching for quick funds without having to go through the hindrances of qualifying for a loan, the Laghu Udyami Credit Card (LUCC)�login�is an excellent solution.
Laghu Udhyami Credit Card (LUCC)
The Laghu Udhyami Credit Card (LUCC) is a government of India financing card system that provides credit to small enterprises, merchants, village industries, handloom industries, small-scale industries, micro industries, self-employed persons, and professionals. The�LUCC login�credit card holder might also obtain a loan against the credit card to purchase all required items to aid the manufacturing process. Cardholders can also obtain a loan under the Laghu Udhyami Credit Card (LUCC) Scheme to increase yearly sales.
Eligibility for LUCC Login
The following are the criteria for LUCC eligibility:
- Existing borrowers in the MSME sector are eligible to qualify for the LUCC scheme.
- Borrowers who want to use the LUCC facility must already be customers of the lending bank. They must have a solid track record of interacting with lending institutions during the previous three years. It is not required for applicants working with lending banks to be existing customers of the bank.
- A working capital loan can be for up to Rs 10 lakh.
Documents Required to Apply for LUCC
A customer contemplating a�LUCC login�loan must complete and submit a loan application to the lending bank. The client should offer:
- Proof of identity, which can be a PAN card, a passport, a voter ID, or a driving license;
- Proof of address, such as a passport, voter ID, or current utility bills;
- If necessary, provide proof of income, such as a Form 16 or salary slip, or an income tax return.
What Are the Features of LUCC?
LUCC is an excellent initiative meant to empower the masses. The features of LUCC include:
- The loan has been approved for a three-year term. The loan can be approved in any of the following ways: cash credit, overdraft limit, or term loan. The bank can conduct yearly evaluations of the customer’s company operations and the previous year’s turnover, and the loan will be approved only if the customer’s account is adequate.
- The lending bank may not need collateral security from customers with a documented track record. Otherwise, the bank may keep the current securities in the case of existing debtors. The bank may also require hypothecation of trade goods, receivables, machinery, and office equipment.
- A third-party guarantee is not necessary for the loan. A CGTMSE insurance policy will be offered in the case of MSME units. The Loans Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE) is a trust that guarantees credit to the MSME sector.
- For loans up to Rs 50,000, the margin requirement is NIL, while for loans between Rs 50,001 and Rs 10 lakh, the margin requirement is 25%.
- The interest rate is 1% over the base lending rate.
Credit Limits Under LUCC
The credit limitations under the�LUCC login�are as follows:
- In the event of small enterprises and retail merchants, the greater of the following restrictions applies: 20% of yearly turnover declared for income tax purposes or 20% of turnover in the previous 12 months in the operational account held with the bank In the absence of GST returns, credit limitations can be determined by taking into consideration the actual turnover in the operating account during the previous two years.
- In the case of self-employed individuals and professionals, 50% of their gross yearly income is indicated on their income tax return.
- In the case of minor industries and small-scale industrial units, a sum determined following the Committee’s proposal of 20% of expected annual turnover, subject to a maximum limitation of Rs 10 lakh.
Laghu Udhyami Credit Card Login
Cardholders can access their credit card account by following the procedures below:
Step 1: Go to the bank’s official website and select Online Banking from the Digital Banking menu.
Step 2: On the following screen, click Login under the Personal Banking option.
Step 3: Now tap on “Continue to log in,” and on the following screen, input the user ID and password and hit “Login.”
How to Apply for a Laghu Udyami Credit Card?
The Laghu Udyami Credit Card application process is easy and simple. You can apply both online and in person.
Online Process for LUCC Login Application
The application process for a LUCC login credit card is simple and easy.
- Go to the bank website.
- Click on the “form” option at the top of the page.
- Fill out the form with your information.
- Click the “Request a Quote” button.
- After some time, you will receive a call from our relationship manager.
- You can compare the costs, eligibility, and perks of each card by gathering information from our representative.
- Submit the documents, proofs, and photographs and apply for the card.
Offline Process for LUCC Login Application
- Find a branch near you.
- Visit the branch.
- Learn more about credit cards and their features, perks, and so on.
- Request the card.
- Submit all necessary documentation, proofs, and photographs.
- Apply for the card.
Pros of the Laghu Udyami Credit Card
Here are some significant benefits of the LUCC.
1. Easy Access to Credit
The most significant advantage of a LUCC credit card is the easy and hassle-free LUCC login process. Credit cards operate on a late payment basis, which means you can use your card now and repay for your transactions later. Every time you tap, no money is deducted from your account.
2. EMI Facility
If you want to make a major purchase but don’t want to use your funds, you can put it on your credit card for deferred payment. In addition, you can opt to pay for your purchase in equal monthly installments, avoiding paying a large sum and emptying your bank account. Paying through EMI is less expensive than making a purchase.
3. Term Loan
Under this program, the credit cardholder can obtain a term loan against the Laghu Udhyami Credit Card to finance the acquisition of tools and equipment that aid in the manufacturing process.
4. Record of Expenses
A credit card keeps track of all purchases made with the LUCC card, and a complete list is delivered with the monthly credit card statement. Lenders also send instantaneous updates when you swipe the LUCC card, showing the amount of credit available as well as the current balance.
Cons of the LUCC Credit Card
The LUCC, although an excellent option, has its drawbacks. Some of the major disadvantages are
1. Easily Overused
As revolving credit does not affect your bank balance, it can be appealing to charge all purchases to the LUCC card, leaving you unaware of how much you spend. This can lead to overspending and borrowing more than you can afford, which can start the debt cycle and incur hefty interest rates on future payments.
2. A High Rate of Interest
If you do not pay your bills on time, the amount is carried forward and interest is charged. This interest accrues over time on transactions completed after the interest-free period.
3. Credit Card Theft
With technological advancements, you can become a victim of credit card fraud. It is feasible to copy a card and obtain access to personal details, allowing another individual to make transactions using the card.
FAQs on Laghu Udhyami Credit Card (LUCC) Login
The following FAQs on LUCC will give you a better grasp of it.
Is LUCC a government scheme?
Yes, the Laghu Udhyami Credit Card (LUCC) is a Government of India credit card scheme that provides credit to small enterprises, merchants, village industries, handloom industries, small-scale industries, micro industries, self-employed persons, and professionals.
What is the maximum loan amount offered under the Laghu Udyami credit card scheme?
A working capital loan can be for up to Rs 10 lakh.
What are the eligibility criteria for a LUCC card?
All borrowers�micro and small firms, artisans, professionals, village industries, retail dealers, and self-employed employees�are eligible for the Laghu Udhyami Credit Card scheme.
Furthermore, qualified borrowers must have a good track record of working with banks in the previous three years. Applicants who have had dealings with banks in the last three years but have no loans are also eligible for the plan.
What is the rate of interest for the Laghu Udhyami Credit Card?
The rate of interest for LUCC is as follows:
- Up to Rs. 50,000 (10.50% to 11.50%)
- Rs. 50,000 to Rs. 2 lakhs, or 12.5% to 13%
- Above Rs. 2 lakhs to Rs. 10 lakhs: 12% to 15.75%
In addition to the specified interest rate, the bank may levy processing fees on loans.
What is the LUCC card’s validity?
The Laghu Udhyami Credit Card is valid for three years.
Credit cards are one of the most widely used financial tools in the world today. The LUCC card is comparable to a loan in that it can be obtained with a swipe. Credit cards have had a substantial economic impact since their emergence in the 1950s.
If you are looking for easy, hassle-free credit cards for your business, then the LUCC can be the right choice.
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