||Working Capital (Cash Credit)
||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.
||It is granted for 1 year i.e. every year renewal is required.
||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.
||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.
- Business Proof
- Business Profile
- Last three years Financial Statements & ITR
- Firm/Company’s PAN Cards.
- Project Report