The Cash credit facility is provided to customer on assessment of their requirements, apart from evaluation of their capital, sales, inventory holding and nature of business. The assets financed by the bank are hypothecated to the bank as a primary security. Land and building in the name of firm, partners, directors or guarantors are taken as collateral security. Other salient features are:

• Borrower has to induct 20% to 35% as margin, depending on types of assets.
• The limit is sanctioned for a period of 12 months from the date of advance.
• The limit will be only renewed on satisfactory conduct of the account.
• Borrower has to submit all the relevant documents for renewal before expiry of limit.
• Rate of Interest on overdraft will be determined as per performance, balance sheet etc. Interestis charged on daily compounding basis. Interest is fixed on the rating assessed by the bank on individual borrowers. The change in interest rate will be informed to borrowers and has to be accepted by them. The interest applied in the account should be served regularly.
• For a new proposal of existing business applicant has to submit Balance Sheet, trading accounts and profit and loss accounts for last previous financial years. For new business applicant has to submit the business plan.
• The licenses issued by various departments and body to be submitted.
• Financial information of firm, partners, directors and guarantor is to be submitted by applicant.
• Details of loans and advances taken from other financial institution have to be submitted.
• The applicant should assist the bank for making a valuation of collateral security.
• The advance will be disbursed after execution of all security documents by borrowers and guarantors.
• Quarterly stock statement of paid up stock will be submitted by borrower within seven days from the end of quarter. Bank officials will inspect the stocks periodically and borrower has to cooperate during the inspection.
• 80% of total sales proceeds should be routed through account.