Cash Credit Loan
What would a company do when it plans to meet its working capital needs? The best way is to go for cash credit, which is a loan offered by banks and financial institutions to company or entity. Once the bank gets the required security from the company, it gives the freedom of withdrawing money (as mutually agreed and depending on the capability of the company) and meet its requirements.
With cash credit loan, a company can meet its varied requirements inducing buying of raw materials, purchasing of machineries or buildings. This loan account is pretty much similar to the current account but gives more flexibility and more chances of using excess money than the account holds. In a way, cash credit helps businesses a lot as it gives them money when their account does not have any.
Cash credit however comes with its share of restrictions as a company can withdraw the money based on its drawing power only. More so, the bank sets the drawing capacity after taking into considerations the business cycle and the working capital gap of the business. The bank also takes into account the stock and book debts statements of the company.
Visit MyLoanBazar.com to search, compare and select from cash credit loans offered by different banks. Compare interest rates, loan terms, withdrawal limits and repayment terms of cash credit loans offered by some of top banks in India. Visit our portal and find the most suitable cash credit loan to meet your working capital needs without any hassles.
My Loan Bazar.com provides customized financial solutions through a single window to meet your day to day working capital requirement. Cash Credit is provided against the Primary Security & Collateral Security both. As far a Primary Security is concern, it is hypothecation of stock, debtors &other current assets and if we talk about collateral security. It is fixed assests, immovable property, corporate and personal guarantee etc. It is generated by way of a running account, drawings power to be regulated with in the permissible drawing limit. Which arrived at on the basis of composition of current assess and current liability,based on the declaration in the stock statement furnished by the borrower to the Bank.
- Faster loan Sanction
- Quick Disbursement
- Easy documentation
- Doorstep Service.
- Competitive ROI -Our team of experts compares & offers you the best available rates and charges.
- Transparency- -We promise to give to the complete clarity on process of your loan applications, About the Applicable charges & proper update on status of loan application
Cash Loan → Eligibility Criteria
Cash credit loan is easy to get provided your company meets the eligibility criteria set by the bank. The loan is perfect for those companies that want to meet a variety of cash payment needs, including wages etc. Any company can apply for this loan and get it approved if found eligible.
Eligibility criteria for cash credit loan include:
The company should be continue for the last 3 years at least
It should be either a proprietorship or partnership or Pvt. Ltd company
The company should be in the same domain for at least 3 years
The company should have operational facility at one place for the last 1 year
The company should be in profit
The company should have a clean credit history
The loan applicant must furnish proof of office or residence
No legal issue should exist with the title to the property
The company should meet the minimum turnover requirement set by the bank, as it varies from bank to bank
Visit MyloanBazar.com to gain more information about cash credit loan.
Cash Credit Loan →Documents
DOCUMENTS REQUIRED FOR PROCESSING THE LOAN APPLICATIONS FOR CASH CREDIT
SR. NO. DOCUMENTS TYPE REQUIRED DOCUMNETS
1 ID PROOF
COPY OF, PASSPORT / PAN CARD / VOTER ID CARD / DRIVING LICENSE/ RATION CARD / ADHAAR CARD
2 ADDRESS PROOF
COPY OF , PASSPORT/UTILITY BILL/VOTER ID CARD / DRIVING LICENSE/ RATION CARD / ADHAAR CARD
3 AGE PROOF
COPY OF, PASSPORT/ PAN CARD/DRIVING LICENSE/BIRTH CERTIFICATE/RATION CARD
4 SIGNATURE PROOF
COPY OF, PAN CARD/BANK AUTHORIZED LETTER
SR. NO. REQUIRED DOCUMNETS
1 4 PHOTOGRAPH FOR APPLICANT & CO-APPLICANT
2 COMPANY PROFILE (HISTORY, BACKGROUND & GROWTH) + DIRECTOR / PARTNER / PROPRIETOR (BACKGROUND,
3 LATEST LIST OF DIRECTOR & SHAREHOLDING PATTERN ON LETTER HEAD ATTESTED BY CA
4 NET WORTH STATEMENT OF ALL DIRECTOR ATTESTED BY CA
5 LATEST SALE TAX/SERVICE TAX/ VAT/CST/CERTIFICATE OF REGISTRATION
6 COPY OF MOA/AOA/PARTNERSHIP DEED (AS APPLICABLE)
7 COPY OF LATEST VAT OF TILL DATE FOR LATEST FINANCIAL YEAR
8 COPY OF PROVISIONAL BALANCE SHEET AND PROFIT & LOSS A/C
9 LAST 3 YEAR, ITR + COMPUTATION OF INCOME + AUDITOR’S REPORT +PROFIT & LOSS+ BALANCE SHEET WITH COMPLETE SCHEDULE
10 LAST 6 MONTH BANK STATEMENT OF ALL RUNNING BANK ACCOUNTS OF COMPANY
11 LAST 6 MONTH BANK STATEMENT OF ALL RUNNING BANK ACCOUNTS OF DIRECTOR / PARTNER / PROPRIETOR.
SR. NO. REQUIRED DOCUMNETS
1 COPY OF PROPERTY PAPER WITH COMPLETE BACK CHAIN
2 COPY OF SANCTION PLAN
3. COPY OF LATEST HOUSE TAX RECEIPT
SR. NO. REQUIRED DOCUMENTS
1 COPY OF SANCTION LETTER & AMORTIZATION SCHEDULE OF ALL RUNNING LOAN.
2 LATEST STATEMENT OF ACCOUNT OF ALL RUNNING LOAN
3. COPY OF LOAN CLOSURE LETTER / NOC, IF ANY LOAN CLOSED IN LAST 6 MONTH.
5. COPY OF WORK ORDER IN HAND
Cash Credit Loan - Process
1. The very first step required for applying a cash credit is submitting the application form along with the necessary documents like age proof, address proof, Identification Proof and employment details.
2. After submitting the application form, you may receive a call from the Bank officials. As some of the Financial Banks in India calls for a face to face discussion before approving your loan. In the present scenario it is the least adopted process, but still applied by some of the Indian Banks.
3. The third step required in a cash credit process is to verify your information filled in the application form. The process involves cross checking of your residential as well as official address authenticity by sending bank representatives to the respective places.
4. The next step is the credit appraisal for getting your loan sanctioned. This process involves establishments of repayment capacities based on calculating your income, age, qualification, nature of business and so on. This stage is referred as the most crucial one where your application for loan might get rejected.
5. After getting your cash credit sanctioned from the bank you will receive an offer letter enclosing the following details on the banks behalf.
- Loan Amount
- Rate of Interest
- Type of Interest rate (Fixed or variable)
- Tenure of the Loan
- Mode of repayment
- Detailed information regarding the scheme (in case of any special scheme)
- General Terms and conditions mentioned under the loan scheme
- Special conditions ( if any)
6. The legal paper formality is required like the submission of the title document of your seller including NOC.
7. Sealing the deal and signing the Cash credit agreement.