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Cash Credit to Traders
Cash Credit to Traders
APCOB offers CASH CREDIT facility to Traders and Manufacturers against security of urban immovable properties located in CRDA and TUDA regions. The facility can be utilised for the purpose to start, develop/ improve the business, take over from other institutions etc
Eligibility
- All business people/traders doing business under sole proprietor concern or partnership firm, societies, companies etc.
- The Branch Manager should satisfy himself about repaying capacity / income of the borrower to meet the monthly interest commitment before sanctioning/ recommending.
- The income of the Trader, including additional income, generated with the credit facility, should be sufficient to meet the monthly interest of the CC limit and other expenses.
Features & Benefits
Any lawful trading / service providers / Manufacturers / Processors etc
The maximum limit is Rs.60.00 lakhs for Sole Proprietary, Partnership Firms & Companies
CC limit is valid for one year
Renewal of the limits based on the satisfactory operations in the sanctioned limit.
The market value of the immovable urban property offered as security should not be less than 100% of the loan limit sanctioned
| Interst Rates % | |||
|---|---|---|---|
|
S. No |
Cibil Score |
Rate of Interest |
|
|
i. |
650 to 700 |
12.00 |
|
|
ii. |
701 to 750 |
11.50 |
|
|
iii. |
751 & above |
11.25 |
|
|
iv |
800 & above |
11.00 |
|
- Penal interest @ 2% will be charged over and above the normal rate on overdue installments/amounts.
Processing Charges
- Processing charges @ 1% of the loan amount, subject to a minimum of Rs. 10,000/-.
- In addition, the fee payable to the panel advocate and valuer will have to be borne by the borrower.
Surety
- Primary Security: Hypothecation of stock in trade, machinery and assignment of book debts.
- Collateral Security: The market value (made by approved valuer) of the immovable urban property offered as security should not be less than 100% of the loan limit sanctioned. CC limits are sanctioned against equitable mortgage of Plots/ Sites/ Houses/ Buildings/lands located in the areas of TUDA and CRDA including Municipalities of Vijayawada, Guntur, Tenali and Mangalagiri.
- Collateral Security can also be accepted in the form of our bank Term Deposits, NSCs etc., and also in combination with immovable property.
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FAQs
1. What is Cash Credit (CC) facility for traders?
Cash Credit is a type of short-term loan provided by financial institutions to traders and businesses. It allows traders to withdraw money from their account even if they don't have sufficient balance, up to a certain approved limit.
2. How is the Cash Credit limit determined for traders?
The Cash Credit limit is determined by the financial institution based on the trader's creditworthiness, business turnover, financial statements, and the collateral provided (if any). The limit is usually a certain percentage of the trader's inventory or receivables.
3. What can traders use the Cash Credit facility for?
Traders can use the Cash Credit facility to meet their working capital requirements, such as purchasing inventory, managing operational expenses, and fulfilling short-term business obligations.
4. What is the interest rate charged on Cash Credit for traders?
The interest rate on Cash Credit can be either fixed or floating and varies based on the lender's policies, market conditions, and the trader's credit profile. Traders should inquire about the interest rate and choose the most suitable option for their business.
5. What are the repayment terms for Cash Credit facilities?
Repayment terms for Cash Credit facilities are flexible and depend on the agreement between the trader and the financial institution. Typically, the trader needs to repay the borrowed amount within a specific tenure, either through regular installments or as a lump sum at the end of the loan term.