Notification

Cash Credit Loan

Nature of Loan - CASH CREDIT LOANS TO INDIVIDUAL

Rate of Interest - 16.00

Installment/ Period - 1 Year

Details (Purpose) - Business Max. 30.00 lakhs

Cash Credit is also known as Working Capital .Cash Credit is a facility to withdraw the amount from the business account even though the account. The excess withdrawal of cash is made generally on demand from the customer and the customer has to pay interest on the excess amount he/she has withdrawn. The Cash Credit facility is quite useful to those businesses where cash payment like wages, transportation, cash purchases are to be made and the receivables are not realized in time. May not have enough credit balance. The limit of the amount that can be withdrawn is sanctioned by the bank based on the business cycle of the client and the working capital gap and the drawing power of the client. This drawing power is determined, based on the stock and book debts statements submitted by the borrower at monthly intervals against the security by hypothecating of stock of commodities and/ or book debts.

Nature of Loan - CASH CREDIT LOANS TO SOCIETIES

Rate of Interest - 14.00

Installment/ Period - 1 Year

Details (Purpose) - Business Max. 30.00 lakhs

Cash Credit Loans for Co-op Societies is helping Co-operative societies which are affiliated to the Bank for different purposes. Financial accommodation to affiliated Cooperatives for working capital requirements will be given under the broad head ‘Cash Credit Loans’. Under this system the society has to make frequent drawls from as well as repayments into the accounts to suit the continuous nature of its financial transactions thus facilitating the most economical use of the accommodations during a fixed period.