Cash Credit is a short-term funding or loan for a company to meet its working capital requirements. Cash credit has loan repayment tenure of one year. Bank offers loan to an enterprise depending on the credit history of the applicant.

Funding procured from cash credit loan can be used for various business purposes, such as business expansion, buying real estate, plant and machinery, purchasing raw materials, enhancing stocks, hiring staff, paying-off salaries, undertaking trainings, debt consolidation, etc.

Features & Benefits &:

• 1) Cash credit is a short-term loan with repayment period of 12 months
• 2) Interest rate charged by lender is on the money withdrawn and not on the sanctioned credit limit
• 3) Cash credit is always offered against collateral or security
• 5) It is used to meet daily working requirements of business
• 6) Higher limit can be availed by businesses with good credit history
• 7) Credit limit is sanctioned considering the company's turnover
• 8) Cash credit can be repaid in form of monthly, quarterly or half-yearly repayments
• 9) Individual borrowers can also avail cash credit against their Fixed Deposits
• 10) Lender has an option of recalling sanctioned amount at short notice
• 11) Interest rate paid on cash credit loan is tax deductible
• 12) Money can be withdrawn any number of times from the sanctioned limit

• 1) Sole proprietorships
• 2) Self employed Professionals
• 3) Partnerships Firm
• 4) Private Limited Companies
• 5) Limited Companies