Stanchart offers line of credit for salaried class

By Our Special Correspondent

CHENNAI, JUNE 21. Standard Chartered Bank today launched its Smart Credit, a new finance product aimed at the salaried class.

It is a hassle free personal line of credit. Under Smart Credit, a person is eligible for a line of credit worth three times his/her gross salary. It is a sort of overdraft facility. Those who are assigned the Smart Credit facility can withdraw cash within the prescribed pre-set overdraft limit using either an ATM card or a cheque book.

Though a person may be assigned a specified personal line of credit, he/she is given the leeway to draw on it as and when the need is felt. The interest will start ticking only on withdrawal of cash and on the amount actually drawn. There is no fixed repayment period. Anyone who enjoys the Smart Credit facility will have freedom as to when and how much to repay. However, the bank has set a floor repayment of five per cent of the overdraft a month.

According to, Mr. Srinivasan Shyam, head of credit cards and personal loans, India, Smart Credit, being an unsecured lending, will fall somewhere between cash withdrawals through credit card and personal financing for the purpose of interest calculation. In his reckoning, the interest will work out to 28 per cent on an annual basis for the overdraft. A unique feature of the facility, according to him, is the non-prescription of end use of the overdraft money.

According to Mr. Shyam, the facility can be availed of by any salaried person by paying an annual fee of Rs. 600. All existing clients and card-holders of the bank too can apply for this.

The bank hopes to have 50,000-60,000 Smart Credit accounts by the end of 2001.

Besides Chennai, Smart Credit is simultaneously launched in Mumbai as well.

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Section  : Business
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