Cash Credit - We support your business when you need that extra credit for working capital

Cash Credit Scheme offers working capital against hypothecation of stock such as raw materials, work-in-process, finished goods, stores and spares, stock in trade, book debts etc., to units under Micro, Small and Medium Enterprises (MSME) Sector, with full coverage of Primary Security

Purpose

  • Working capital finance for Traders.
  • Working capital finance for manufactures.
  • Working capital finance for Service providers

Eligibility

  • Borrowers can be Individuals, proprietary, partnership concerns, SHGs, Companies, Trusts in MSME segment (service units) engaged in contractor/sub- contractor activity and falling within the meaning of Micro, Small & Medium Enterprises as defined in MSMED Act, 2006
  • Borrower should have satisfactory dealings with the Bank
  • For new units, size and turnover will be considered in order to estimate the eligible limit

Limit & Margin

    Limit

  • Minimum loan amount is Rs. 1 lakh
  • Eligible limit is sanctioned on the basis of Working Capital requirement, upto 20 % of turn over.
  • For new units, loan limit will be 80% of the working capital arrived under Operating Cycle Method.
  • Margin

  • A margin of 5% needs to be invested by the borrower.
  • For new units, margin will be 20% of the working capital arrived under Operating Cycle Method.

Security

    Up to Rs.1 lakh

  • Hypothecation of assets
  • Coobligation of a worthy person
  • Above Rs.1 lakh

  • Hypothecation of assets
  • Collateral security of Immovable property
  • The value of Collateral security should not be less than 150% of the working capital limit.

Repayment

  • Cash Credit loans are tenable for 24 months subjected to annual Review.

Interest Rates & Charges

  • Please visit Loan interest rates page for details.
  • Working capital finance for Traders.
  • Working capital finance for manufactures.
  • Working capital finance for Service providers
  • Borrowers can be Individuals, proprietary, partnership concerns, SHGs, Companies, Trusts in MSME segment (service units) engaged in contractor/sub- contractor activity and falling within the meaning of Micro, Small & Medium Enterprises as defined in MSMED Act, 2006
  • Borrower should have satisfactory dealings with the Bank
  • For new units, size and turnover will be considered in order to estimate the eligible limit

    Limit

  • Minimum loan amount is Rs. 1 lakh
  • Eligible limit is sanctioned on the basis of Working Capital requirement, upto 20 % of turn over.
  • For new units, loan limit will be 80% of the working capital arrived under Operating Cycle Method.
  • Margin

  • A margin of 5% needs to be invested by the borrower.
  • For new units, margin will be 20% of the working capital arrived under Operating Cycle Method.

    Up to Rs.1 lakh

  • Hypothecation of assets
  • Coobligation of a worthy person
  • Above Rs.1 lakh

  • Hypothecation of assets
  • Collateral security of Immovable property
  • The value of Collateral security should not be less than 150% of the working capital limit.
  • Cash Credit loans are tenable for 24 months subjected to annual Review.
  • Please visit Loan interest rates page for details.

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