Overview
What is a Cash Credit/Working Capital Loan?
Cash credit is generally a short-term source of financing for entities carrying on businesses to meet working capital requirements. Through cash credit the financial institutions like Banks and NBFCs approve a borrowing limit to the borrower. The borrower can withdraw money up to the borrowing limit but what is interesting is that the interest is charged only on amount used from that borrowing limit. To avail this facility, a new cash credit account has to be opened.
Features of Cash Credit
Borrowing limit
Depending on the credit worthiness of the borrower the banks decide a borrowing limit. The nature of inventory, trade receivables, the performance of the business, work in progress inventory etc., are considered while evaluating the credit limit. The borrower can borrow any amount up to the limit.
Interest
Interest is charged only on the amount withdrawn and not on the entire borrowing limit. The interest paid on CC is tax deductible.
Credit period
As this a short-term loan facility, a borrowing limit is valid for 12 months maximum. On expiry of the said 12 months the borrowing limit is revalued and renewed by the lender.
Collateral
The current assets like trade receivables, inventory etc. are usually charged as collateral security.
Easy disbursement
Cash credit is easily and quickly disbursed if the current assets to be pledged are available and the realizable value is determined easily.
Commitment charge
The lender asks the borrower to pay minimum amount of interest on a predetermined amount or the amount of money borrowed.
Frequency of withdrawal
The borrower can withdraw the cash credit as many times as the borrower needs up to the borrowing limit.
Why Fourbridges?
Fast & Easy Process
Lowest Interest Rate
Minimum Documentation
Specialist Team Support
Nationwide Digital Presence
Both Offline & Online Process Advantage
Eligibility Criteria
Cash Credit Eligibility Criteria
Age of Owner
Minimum age :21years.
Maximum age : 65 at the end of loan tenure.
Business Vintage
For individuals: min 3 years of experience.
For business: min 2 years of office stability.
Income for Individuals
Minimum : 2.5-3.00 lakhs per annum as per last 2 years’ ITR
Minimum Turnover
Minimum turnover: 25 lakhs as per the latest financial statements.
How to apply for a Cash Credit
Check Your Eligibility
Click On Apply Now
Fill In Personal And Financial Details
Submit Application
Testimonials
FAQ's
Frequently Asked Questions(FAQ's)
The tenure is up to 12 months which can be further revised and renewed for the next financial year.
Collaterals can be any current assets such as debtors, inventories, work- in -progress, raw materials etc.
The interest on the cash credit facility is charged on the amount utilised.
The interest payments are tax deductible.
Yes, multiple withdraws can be made on CC up to your borrowing limit.
All Individuals, Partnership firms, LLPs, Companies etc.
You can apply online through our website.
You can also email us at info@fourbridgesloans.com or contact/whatsapp us at 9147300131.
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