Cash Credit Limit

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Cash Credit Limit facility is available as a working capital for development of business against prime security of stock or book debts.

Applicant details :

  • Last three years balance sheet, copy of income tax return, copy of Partner’s 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
  • Applicant’s Pan card / Partner’s Pan Card / Limited Company’s 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-2 copies
  • Address proof – electric bill /telephone bill (Any one)
  • ID proof – 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 70% margin of stock , whichever is less.
  • Applicant has to provide collateral security as per bank norms 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 every Quater of next month.
  • The applicant has to provide two guarantors.
  • Limit is subject to renewal after 12 months.
  • Applicant has to take share @ 2.50% of the limit.
  • Processing charges of 0.50% will be levied on sanction.