Cash credit is a loan extended to a company by a bank on the basis of Stock Value and Property Value. It enables a company to withdraw money from a bank account without keeping a credit balance. The account is limited to only borrowing up to the borrowing limit. Also, interest is charged on the amount borrowed and not the borrowing limit.
Rate of Interest at present varies from 8.5% to 10%
In this type of Loan bank takes into consideration many business aspect.It takes into consideration your future expected return ,DSCR, Debt to Capital Employed ratio etc.
You need to provide stock statement monthly/quarterly and your Drawing Power is set on the basis of your closing stock, Debtor and Creditor amount. However in this type of Loan, Bank can go upto 100% of Property Market Value which is not availaible in any other Loan
It Requires a lot of Study and expertise to get the Desired CGTSME limit from Various Financial Institution.We provide the thourough Guidance for the same and Unlike other Financial Agent, we also provide the After Loan Service. We not only assist in getting Loan but also provide host of other services which are given below