Cash Credit
Purpose Financing against hypothecation of the stock of goods & charge over the receivables of the business.
Financing Ratio: Maximum 70% of the value of the goods plus receivable amount under the hypothecation/charge. The financing ratio is to be checked/confirmed on quarterly basis by obtaining stock & receivables report and verifying by the relationship officer.
Nature Revolving & renewable.
Disbursement Limit is provided on the cash credit account and upon request/demand of the borrower, amount is disbursed on the nominee current account.
Principal Repayment Fully within expiry of the facility.
Interest repayment On quarterly basis but prior to the expiry of the facility.
Security: At least 143% coverage by the value of hypothecated goods & receivables of the business and/or 70% coverage by the mortgage collateral securities.
Tenure: Maximum one year period.

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