A Cash Credit (CC) Loan is a short-term, revolving credit facility provided to businesses and entrepreneurs to meet their working capital requirements. Unlike a term loan where the full amount is disbursed at once, a CC account allows the borrower to withdraw money up to a pre-sanctioned limit. The limit is primarily secured by the hypothecation of current assets like "Stock-in-Trade" and "Account Receivables." It is a vital tool for maintaining a healthy cash flow during the production and sales cycles.
Applicant details:
- Last three years balance sheet, copy of income tax return, copy of Partners personal return , Memorandum and Article of Association in case of limited company, resolution for loan application.
- Tax bill of Property.
- Three photographs of Applicant.
- Business proof of Applicant.
- Applicants Pan card / Partners Pan Card / Limited Companys Pan card.
- Bank account statement of last 2 years.
- Stock statement of the business.
- Applicant has to show all original documents to the bank for verification with zerox copy. Original documents will be returned to applicant after verification.
Guarantor Details:
- Photograph-two copies.
- Last tax bill.
- Last income tax return copy / Pay slip of last 3 Months.
- Address proof-electric bill /telephone bill (any one).
- Photo proof-Pan card / Voter card / Driving license/Aadhar card (Any one)
Conditions:
- The limit will be decided on the basis of turn over (sales) / projected sales i.e. 20% of turnover (sales) or projected sales against stock 30% margin of stock.
- Applicant has to provide collateral security to the tune of 70% of the limit by way registered mortgage declaration of residential premises, office, shop, godown, shed etc.
- Insurance of stock and mortgage property to be taken in favour of bank by the applicant.
- Original documents such as share certificate, Sale deed, Tax receipt allotment letter are required for registered mortgage of the property.
- Title clearance and valuation report will be done by approved lawyer and valuer of the bank. Applicant has to pay their fees.
- Applicant has to submit stock statement at the end of quarter and before 10th of the next quarter.
- The applicant has to provide two guarantors.
- Limit is subject to renewal after 12 months.
- Applicant has to take share @ 1%, 2%, 2.5% of the limit.
- Processing charges upto Rs. 1000/- will be levied on sanction.
