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Cash Credit

To meet working capital requirements of the business, including purchase of raw materials, stock-in-process, finished goods, and receivables management.

Interest RateAs per quantum of loan, fixed by the Board of Directors under the directives of the Reserve Bank of India from time to time.
Maximum AmountDepending upon the requirement of the borrower subject to Bank's Exposure Limit
Maximum Tenure12 Months (renewable subject to satisfactory account operation)
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Key Highlights

Finance to support working capital needs.
Ad hoc limit available for temporary requirements.
End-use of funds strictly monitored to prevent diversion.
Drawing power determined after excluding unpaid stocks.
Hypothecation with first charge on stocks and book debts.
Collateral security or personal sureties required.
Comprehensive insurance required on stock/property.
Flexible renewal every 12 months subject to satisfactory account operation.

Eligibility Criteria

Regular membership with 2.5% share linking as per RBI guidelines.
Borrower must have sufficient business income to service the loan and pay monthly interest.
Borrower should have filed Income Tax Returns for the last three consecutive years or since incorporation if less than three years.
Two personal sureties with net monthly income of ₹25000 or ₹4 Lakhs annual income; one surety if secured by collateral property.

Documents Required

Balance Sheet, Profit & Loss account, and financial statements of the borrower.
Computation of Income Statement.
Income Tax Returns filed and tax paid challans.
Details of stock, stock-in-process, finished goods, and book debts.
KYC documents of borrower and sureties.
Collateral security documents if applicable (e.g., FDR, NSC, KVP, LIC, or immovable property documents).
Insurance policy covering stocks / mortgaged property with Bank clause.

Security & Fees

Collateral / Security

Hypothecation of stock of raw materials, stock-in-trade, stock-in-process, finished goods, and book debts (below 90 days). Adequate collateral security in form of immovable property or approved financial instruments. Personal sureties required as per eligibility.

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Processing Fee
As per prescribed Bank's Service Charges.
Check fees and charges

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