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  • Cash Credit Loan is Rated as "Great!" by 93411 Users

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    Cash Credit Loan

    Cash credit is a cash loan given to a company. The bank provides the funding only after they acquire the required security to secure the loan. When the security has been provided, the company can continuously draw money from the bank to the specified limit set by the bank.

    In India, cash credit is offered to businesses to finance their working capital requirements. The businesses can buy raw materials, machinery or buildings. The cash credit account is very much similar to the current account. But current account allows overdraft facility occasionally whereas cash credit account is supposed to be overdrawn continuously. The overdrawing limit will be set by the bank and the limit is sanctioned based on the working capital requirement of the company minus the margin.

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    Features and benefits of cash credit loans

    • Cash credit is provided to a business so that it can take care of its working capital needs.
    • This loan is offered as a short-term loan with a fixed repayment schedule. It can be a monthly or quarterly repayment schedule.
    • The loan applicant will be required to provide a collateral or a security. The borrower can apply for the loan by getting certain assets such as raw materials, finished goods, or stock hypothecated.
    • You will be required to pay interest only on the amount that you utilise and not on the loan that is approved.
    • You can withdraw how much ever you want from the cash credit account depending on your requirements.
    • One can apply for a cash credit loan against his or her fixed deposit in order to save on interest.
    • Cash credit loans can be utilised by firms and companies to take care of their daily financial needs.
    • The credit limit provided for cash credit loans is usually a proportion of the value of the security provided by the borrower.
    • When the cash credit facility is offered, the applicant is entitled to draw funds with the help of a running account, by using a cheque book, which has to be provided by the lender in the name of the business entity or the firm.

    Security for cash credit loans

    A business entity can procure a cash credit loan only when it furnishes a security to secure the loan. This security can be submitted in the form of finished goods, work-in-progress goods, raw materials, stock-in-trade, spare products, and store products.

    Differences between cash credit loans and overdrafts

    Cash credits and overdrafts are kinds of secured lines of credit. However, there are certain differences between both cash credits and overdrafts. Under cash credit loans, the borrower has to provide a collateral to get the necessary cash. The borrower will be required to pay interest only on the amount that is used by him or her. Cash credit loans are typically offered to business entities.

    On the other hand, overdrafts can be of 2 types and they include regular overdrafts and secured overdrafts. When you choose a regular overdraft, you will be allowed to take out more funds from your account than your actual balance would allow you to. When you select a secured overdraft account, you can use a collateral such as life insurance policies, bonds, mutual funds, debentures, etc. to secure your credit.

    • A cash credit loan can be procured by a loan applicant when he or she has a cash credit account with the lender. On the other hand, one can obtain an overdraft facility only if the applicant has a current account.
    • To get a cash credit facility loan, the loan applicant will be required to submit a collateral security or hypothecate a stock or security. On the other hand, for an overdraft facility, one will be allowed to furnish only a fixed asset as a collateral.

    The following banks offer Cash Credit Loans

    ICICI Bank Cash Credit Loan

    Working Capital Finance is offered by ICICI Bank. It is an innovative way to finance the working capital requirement for your business. The bank offers the following facilities:

    Cash credit limit or overdraft facility to meet your daily requirements.

    Working capital limits to meet your export requirements.

    Working capital limits in the form of Letters of Credit and Buyers Credit to ensure the goods are delivered on time.

    Bank Guarantees to meet performance and financial obligations.

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    HDFC Bank Cash Credit Loan

    HDFC Bank offers Commodity Pledge Loan and Cash Credit or Overdraft facility to meet the working capital requirement of your business. The overdraft facility is provided after assessing working capital requirements. The borrower will have to provide 3 years financial statement to the bank.

    IDBI Bank Cash Credit Loan

    IDBI offers working capital finance- IDBI Bank Working Capital. The working capital funds are finances to purchase raw materials, stores, fuel, paying the labour, power charges, storing goods, etc. The credit is granted against hypothecation of stock. You will have to open a running account and drawings are regulated within the permissible drawing limits.

    Axis Bank Cash Credit Loan

    Cash credit is offered to meet the day to day working capital requirement needs. The credit is provided against the primary security of stock, debtors, current assets and collateral security of movable and immovable assets. The interest is sanction on the amount utilised.

    Oriental Bank of Commerce (OBC) Cash Credit Loan

    Loan for traders is offered buy Oriental Bank of Commerce to meet the day-to-day working capital requirements. Term loan is offered to acquire premises or land or to construct a building to run the business. The loan is also provided to repair, furnish or renovate and to purchase brand new equipments, software, business tools, computer or UPS.

    Cash Credit Loan Reviews

    • Bank Bazaar Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar provides best services when compared to others in the market. I am using the services of bankbazaar from more than 1 year. The website of bankbazaar is easy to use and is user friendly. Customer service was good and they followed up on time.
      Was this review helpful? 1
      , bangalore
      Reviewed on Aug 17, 2018
    • HDFC Bank Personal Loan
      "Good service"
      0.5 4.5/5 "Excellent!"
      It was a good experience with HDFC bank for personal loan, the loan amount was for Rs 4 lakhs with nominal interest rate in the market. The process was smooth and it took 10 days to receive the loan amount. Customer service was good and they followed up on time. The tenure period for this loan is 2 years.
      Was this review helpful? 1
      , bangalore
      Reviewed on Aug 17, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I know bankbazaar.com from last 2 years but i have used bankbazaar for the first time. The services provided by bankbazaar is good when compared to others. Customer service was good with bankbazaar and their response was on time. The website of bankbazaar is easy to use and is user friendly.
      Was this review helpful? 0
      , mumbai
      Reviewed on Aug 17, 2018
    • Standard Chartered Bank Personal Loan
      "Good service"
      0.5 3.5/5 "Pretty good"
      It was an average experience with Standard Chartered Bank for personal loan, the process was quite long and it took 20-25 days to complete. Documents were collected on time and the customer service was good. The loan amount was for Rs 6 lakhs for 5 years with high interest rate.
      Was this review helpful? 1
      , mumbai
      Reviewed on Aug 17, 2018
    • Bank Bazaar Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar provides best services when compared to others in the market. I am using the services of bankbazaar from last 1 year. Customer service was very good and they responded on time. The website of bankbazaar is easy to use and is user friendly.
      Was this review helpful? 1
      , chennai
      Reviewed on Aug 17, 2018
    • Tata capital Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have my personal loan application approved with TATA CAPITAL and the experience was good, the loan amount was for Rs 2 lakhs with the tenure period of 3 years and the rate of interest is nominal when compared to other banks. Customer service was good and they responded on time.
      Was this review helpful? 2
      , chennai
      Reviewed on Aug 17, 2018
    • Bank Bazaar Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I know bankbazaar.com from last 3-4years, the services provided by bankbazaar is good when compared to others. Customer service was good with bankbazaar and they responded on time. Mobile application of bankbazaar is easy to access and is user friendly.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Aug 17, 2018
    • HDFC Bank Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have my personal loan application approved with HDFC bank and the experience was good, the loan amount was for Rs 3 lakhs with the tenure period of 4 years and the rate of interest is nominal when compared to other banks. Customer service was good and they responded on time.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Aug 17, 2018
    • Bank Bazaar Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I am using the services of paytm from last 1 year, the services provided by bankbazaar is good when compared to others. Customer service was good with bankbazaar and their response was on time. I check my credit score on the website of bankbazaar.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Aug 17, 2018
    • ICICI Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      My experience was very good with ICICI bank for personal loan,, the process took more than 15 days to complete. The loan amount was for Rs 1 lac with nominal interest rate. Customer service was good and they followed up on time. The tenure period for this loan is 3 years.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Aug 17, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 3.5/5 "Pretty good"
      It was a good experience with bankbazaar so far, they provide good services when compared to others in the market. Customer service was good with bankbazaar and they responded on time. The website of bankbazaar is easy to navigate and is user friendly.
      Was this review helpful? 0
      , kolkata
      Reviewed on Aug 17, 2018
    • Kotak Personal Loan
      "Good service"
      0.5 3.5/5 "Pretty good"
      It was a good experience with Kotak Mahindra bank for personal loan, the loan amount was for Rs 3 lakhs with nominal interest rate in the market. The process was quite long and it took 15 days to receive the loan amount. Customer service was good and they followed up on time.
      Was this review helpful? 0
      , kolkata
      Reviewed on Aug 17, 2018
    • Axis Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken a personal loan with AXIS bank and my loan experience was good, the loan amount was for Rs 4 lakhs with nominal interest rate when compared to other banks. The tenure period for this loan is 4 years and there are no preclosure charges.
      Was this review helpful? 1
      , bangalore
      Reviewed on Aug 17, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      This was my first time experience with bankbazaar and it was good, the services provided by bankbazaar is good when compared to others in the market. Customer service was good and they responded on time. I check my credit score on the website of bankbazaar.
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 17, 2018
    • HDFC Bank Personal Loan
      "Need to follow up on time"
      0.5 3.5/5 "Pretty good"
      It was a fine experience with HDFC bank for personal loan, the rate of interest of 11.29% was nominal when compared to other banks. Customer service was average and the follow up was not that great. The process was quick and i received my loan amount on time.
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 17, 2018
    • Bank Bazaar Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I know bankbazaar.com from last 2-4 years, the services provided by bankbazaar is good when compared to other banking websites. Customer service was good with bankbazaar and they responded on time. I check for offers on the website of bankbazaar.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Aug 17, 2018
    • Cashe Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      It was a good experience with CashE for personal loan, the process was quick and i received the loan amount immediately after the documents were approved. Customer service was good and they responded on time. The rate of interest and charges are nominal when compared to others.
      Was this review helpful? 1
      , ghaziabad
      Reviewed on Aug 17, 2018
    • HDFC Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken a personal loan with HDFC bank and the loan experience was good. The loan amount was for Rs 1.25 lakhs with nominal interest rate with the tenure period of 3 years. There are no preclosure charges and the customer service was very good with HDFC bank.
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 17, 2018
    • Bank Bazaar Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      My experience was good so far with bankbazaar, i am using the services of bankbazaar from last 6 months. Customer service was good with bankbazaar and they responded on time. The mobile application of bankbazaar is easy to use and is user friendly.
      Was this review helpful? 1
      , bangalore
      Reviewed on Aug 17, 2018
    • Early Salary Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      It was a good experience with Early salary for personal loan, i have taken the loan for Rs 10000 for the tenure period of 20 days. The rate of interest and charges were nominal when compared to others. Customer service was good and they responded on time.
      Was this review helpful? 0
      , bangalore
      Reviewed on Aug 17, 2018
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