CDCCB

Cash Credit / OD Loan

Cash credit is a cash loan given to an Individual/company. The bank provides the funding only after they acquire the required security to secure the loan. When the security has been provided, the company can continuously draw money from the bank to the specified limit set by the bank. Cash credit is offered to businesses to finance their working capital requirements. The businesses can buy raw materials, machinery etc. Limit is sanctioned based on the working capital requirement of the company minus the margin.

Features and benefits of cash credit loans

Cash credit is provided to a business so that it can take care of its working capital needs.

This loan is offered as a short-term loan with a fixed repayment schedule.

The loan applicant will be required to provide a collateral security.

You will be required to pay interest only on the amount that you utilise and not on the loan that is approved.

You can withdraw how much ever you want from the cash credit account depending on your requirements.

Cash credit loans can be utilised by firms and companies to take care of their daily financial needs.

The credit limit provided for cash credit loans is usually a proportion of the value of the security provided by the borrower.

When the cash credit facility is offered, the applicant is entitled to draw funds with the help of a running account, by using a cheque book, which has to be provided by the lender in the name of the business entity or the firm.

Eligibility:

Individual customers/Company having satisfactory dealings with our bank.

New customers well introduced and credit worthy with satisfactory banker's / market reports on them.

Maximum individual limit of the loan is Rs 40,00,000/-

Amount of Finance:

Based on NDR (Net Disposible Resources)

Maximum period of Loan:

Up to 12 months / 1 years and should be renewed every year

Security:

Mortgage of property acceptable to the Bank having clear marketable title.

The land offered as security should be converted land/building.

Consolidate Stock statement in the prescribed format should be submitted.

Guarantee:

2 Personal Guarantee from person / s of adequate net worth acceptable to the Bank.

Rate of Interest: 12.00 %

Documents/Fomalities:

Loan Application with passport size photographs - 2 copies each

ID proof,Income proof of the applicant and guarantor Income Tax Assessment Order / IT Returns

Title deeds of the property ,RTC/Form 9 and 11A, EC, latest tax paid receipt ,valuation report, Legal Scrutiny Report by our Bank panel lawyer

Approved plan of building

Annual Financial Statements for the past 3 years (in case of persons other than salaried individuals)

Stock statement in prescribed format.