Aasra Cooperative Credit Society Ltd

Cost-Plus Finance

Feature	Details & Specifications
Product Purpose	Purchase-linked finance for business tools, machines, equipment, or inventory.
Core Model	Asset-Backed: The Society pays the supplier directly; no cash is disbursed to the member.
Finance Limit	Maximum purchase value of ₹1,00,000.
Tenure	Flexible tenures ranging from 3 months to 12 months based on business cycle and capacity.
Pricing Structure	A Fixed 15% mark-up on the cost, declared upfront and non-compounding.
Repayment Mode	Repayable in equal monthly installments according to the agreed schedule.
Early Settlement	Tiered discounts on the mark-up (2% to 10%) are available for closures within 2 to 10 months.
Eligibility	Minimum 6 months of membership and active, verified economic activity.

Productive Use: Funds are strictly for productive business utilization to prevent the misuse of cash loans.
Selection & Quality: The member identifies the specific goods and supplier; they also have the right to inspect items upon delivery.
Guarantor Requirement: Requires two member-guarantors who must pledge their account balances as collateral.
Legal Compliance: The model is fully compliant with Aasra’s bye-laws regarding interest-free financial assistance and the purchase/supply of goods.
Indemnity: The member is responsible for any damage to the goods after taking possession and must indemnify the Society for losses.
Transparency: All costs (taxes, duties, administrative fees) are detailed upfront in a comprehensive Price Structure.