Cash Credit Loans
“Never spend your money before you have it.”
Cash credit loans are for the business mens who need money for their working capital.the business person usually uses this type of loans. They withdraw money when they need it but up to the withdrawal limit. The interest rates of the credit cash loans is very low.
BENEFITS OF CASH CREDIT LOANS
- It helps in completing the requirements of the business capital.
- The interest rates are only for the loan amount that you have utilized.
- Easy processing.
- The process of agreement and application is easy and convenient.
- The repayment facilities are very easy and flexible.
APPLY FOR CASH CREDIT LOANS
Applying for a cash credit loan is very convenient and easy. The steps of applying for this type of loan are given below.
- First you should have to choose the bank for the loan.
- Then you have to visit the branch of the bank and ask for the application form from the bank counter.
- Fill up the form and do not leave any of the sections in the form.
- Paste your passport sized photograph and other required documents in the form.
- Submit the form and wait for the approval process from the bank.
- After the verification and approval process you will get the loan amount transferred to your bank account.
ELIGIBILITY FOR CASH CREDIT LOANS
- The age criteria for this loan is 25 years.
- The business establishment period should be at least three years.
- The collateral is necessary for this loan the borrower must provide a collateral for this loan.
- The citizenship of India is necessary.
- The borrower should be a businessman,industrialist,etc.
DOCUMENTATIONS REQUIRED FOR CASH CREDIT LOANS
- The identity proof is required as in the other loans such as aadhar card,PAN Card,licence,etc.
- Age proof is also necessary.
- The address proof such as utility bills,aadhar card,passport,etc are asked to you.
- The IT return slip is also required.
- Previous six years’ bank statements are also important documents.
- The Financial certification by the Chartered Accountant is also required.
- The record of your loan repayment by the other banks.
INTEREST RATES OF CASH CREDIT LOANS
The interest rates for the cash credit loan is 18% on wards for the loan amount up to Rs.30 lakhs. The repayment tenure for this loan amount is up to ninety six months.
DISADVANTAGES OF CASH CREDIT LOANS
- Sometimes it has very high interest rates.
- It has many obligations and restrictions.
- You can use only a limited amount of the loan.
- The cash you are withdrawing for any purpose, you have to mention the purpose.
- The approval process is not very easy in this type of loan.
BANKS PROVIDING CASH CREDIT LOANS AFTER COVID-19
|ICICI Bank||Bajaj Finserve|
|Union Bank||HDFC Bank|
|Central Bank of India||UCO Bank|
|Bank of Baroda||Axis Bank|
“Interest on debts grows without rain.”
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