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Working Capital Loan (CC)

Particulars Working Capital (Cash Credit)
Introduction Cash Credit is also known as Working Capital. Cash Credit is a facility to finance day to day expenditure of business by (specially Stock).
Who Can Apply Any Businessman providing sufficient security by Hypothicating of Stock and/or Book Debts in order to qualify for amount of Cash Credit required.
Loan Term It is granted for 1 year i.e. every year renewal is required.
Margin Generally 40% margin  of debtor and 25% of Stock is retain by bank. Margin means to calculate drawing power out of 100% amount of stock only 75% value will be consider and out of 100% amount of debtors only 60% amount will be consider.
Interest Rates
Security Book Debts and Stock of commodities is primary security for working capital loan. However along with primary security addition collateral  security also required in the form of immovable property.
Documents Required
  • Business Proof
  • Business Profile
  • Last three years Financial Statements & ITR
  • Firm/Company’s PAN Cards.
  • Project Report