Cash Credit Facility

The facility will be extended to Manufacturers, Retailers, Distributors, Service Enterprises.

Eligibility:

• Should be a HUF, Proprietorship/partnership firm, Private Ltd, or Public Ltd. Company.
• Business vintage should be a minimum of 3 years and should be present in the same locality.
• Relationship with the bank for at least the past 6 months.
• Should have a sanctioned credit facility with another bank up to exposure of 1 Crore (this criterion is for OCC to business with a turnover above 7.50 Crores who will be given a limit of 25 Lakhs and above)
• Should not be listed in RBI Defaulter's List/HDFC negative database list.
• CIBIL database should not show the applicant as a defaulter.
• The conduct of the account with the existing banker should be satisfactory.
• Annual turnover should be up to 7.50 Crores for limits above 10 Lakhs.
• Profit-making company for the last 2 years with a good Tangible Net Worth.

Limit:

• The limit will be above 2 Lakhs and as per the profile and requirement of the company.
• For companies with an annual turnover up to 7.50 Crores, there are two categories of cash credit limit.

Value draw: Wherein the limit will be between 10 Lakhs and 25 Lakhs.

Elite draw: Wherein the limit will be for taking the business to greater heights. Quantum will be 25 Lakhs and above.

Security: Prime security of stocks and receivables. A wide range of collateral choice is available collateral security by way of mortgage of residential or commercial property.

Interest: Floating rate of interest linked to MCLR as decided by the bank from time to time.

 Margin: As stipulated by the bank on case to case basis

 Processing Charge: 1% of the limit or 7,500, whichever is higher. An upfront fee of 5,000 will be collected towards the legal report and valuation of the property offered as security prior to sanction of the facility. This administrative fee is non-refundable.

 Renewal fee: 0.75% of the limit

 Penal interest: 18% p.a. on the overdue amount for the overdue period. 2% over and above the normal rate of interest charged for the account will be levied for non-submission of stock/book debt statements.

 Commitment charges:

• Where the average utilisation of the limit is 60%, no charges will be collected.
• For utilisation less than 60%, a fee of 0.50% p.a. on the difference between the average quarterly utilisation of 60% and actual utilisation will be collected.
• Charges will be collected every quarter

 ROC filing charges: 3,000 per filing, if done by the bank (collected only in the case of Pvt Ltd Companies).

Eligibility:

• The limit will be made available to individuals, Partnership Firm, Proprietorship firm, Companies, etc.
• The facility will be made available for the working capital requirements of the units.

Limit:

• There are three methods of assessment of the limit Cash Budget Method, Turnover Method, and MPBF Method. The limits evaluated by the above methods will be fixed for each account.
• The drawing limit will be based on the stocks, i.e., raw materials, work-in-process, finished goods, and receivables.
• Wherever there are book debts arising out of genuine transactions with the Government Departments/ PSUs/Joint Stock Companies/firms of repute, cash credit can be given only against the book debts of a specific age.

Interest: As decided by the bank from time to time and linked to MCLR

Security:

• Stocks and receivables will be the primary security and land, building, and other fixed assets of the firm/company will be collateral security.
• Personal guarantee stipulated on a case to case basis

Repayment: The tenability fixed for cash credit is normally 12 months subject to review annually.

• CGTMSE guarantee cover will be available subject to conditions.

Processing charges: Will be intimated on approval of the proposal for the cash credit limit.

Eligibility:

• Individuals, LLPs, Partnership, Proprietorship Firms, Registered Trusts and Co-operative Societies, involved in manufacturing and services categorised under MSME.
• The qualification of the promoter in the service sector will be of prime importance.

Purpose: To meet the working capital requirements of the business.

Limit: Need-based and depending on the profile of the company.

Margin:

• For limit up to 2 Lakhs: No margin
• For a limit above 2 Lakhs, but less than 5 Lakhs: 20%
• For a limit above 5 Lakhs: 25%

Repayment: The cash credit limit will be set for 12 months and will be renewed every year.

Interest: As per the guidelines of the bank from time to time

Processing charges: Will be intimated at the time of sanction on case to case basis.

Axis Bank

Eligibility:

• All business entities, having a minimum business vintage of 3 years.
• Minimum annual turnover of 30 Lakhs and a maximum turnover of 10 Lakhs.
• Age of the promoter or the individual should be 21 years at the time of applying for the facility.
• The office or the residence should be owned and if rented, should have been in the place of residence at least for a period of 12 months unless shifted to own residence.
• If the office is rented, then should have been in the same premises at least for a period of 24 months.
• For an individual, the minimum annual income should be 2.5 Lakhs as per ITR for the last 2 years.
• Non-individuals should have been making a cash profit of 3 Lakhs for the last 2 years.

Limit: A limit between 10 Lakhs to 3 Crores will be provided depending on the need and profile of the business.

Interest: As per bank guidelines from time to time

Security: Prime security by way of hypothecation of stocks and book debts. Collateral security by way of mortgage of land and building.

Repayment: Limit will be set for a period of 12 months and will be renewed on review every year.

Processing charges: As per the guidelines of the bank from time to time.

Commitment charges: Nil

Eligibility:

• Individuals, Proprietorship Firm, Partnership Firm, LLPs, Pvt. Ltd. Companies, Registered Co-operative Societies and Trusts, who are dealing with trading of goods and trading in goods not prohibited by law.
• Professionals/ businessmen/ self-employed individuals who are in the business for at least a period of 3 years.
• Minimum annual gross income should be 3 Lakhs for the last 3 years.
• NRI with a valid Indian passport, with a business for a minimum of 2 years, and having a valid job contract for a minimum of 2 years in a foreign country. The minimum annual gross income required will be 5 Lakhs.

Quantum: Up to 10 Crores, depending on the requirement and company profile.

Interest: As per the guidelines of the bank from time to time

Security: Security of stocks and receivables not stipulated and no submission of stock/book statement required. Collateral security of residential/commercial property is required.

Repayment: The limit will be permitted for a period of 12 months and will be renewed further subject to annual review.

Processing charges: 350 per lakh with a maximum of 35 Lakhs.