The account may have debit or credit balance on the basis of transaction. Debit balance will be treated as Asset and Credit balance will be treated as liability. It will be categorized as demand deposit for credit balance and advance for debit balance.
Opening a Cash Credit Account, prior sanction is required.
Eligible customers are
- Individual (Adult)
- Sole traders Firm/Proprietorship
- Partnership Firm
- Joint Stock Company
- Non Trading Concern ( Club, Society etc.)
- Govt./Autonomous Bodies
Account Opening Procedure
Specific papers/documents on the basis of the type of the customer.
Joint Account Concept
Operation as per instruction: Joint/Any/All
Payable to either or survivor.
Required in case of individual or proprietorship company
Random by the Customers within the sanctioned limit.
Excess over the limit may be allowed by the competent authority.
There is no repayment schedule. Borrowers can payback the entire loan amount on or before expiry date.
Loans are secured by collateral or personal/corporate guarantee
The cash credit advances can be renewed.
Renewal with enhancement (increase of principal) is also possible
Drawing Power Calculation
Drawing power (DP) depends on value of stock (collateral) and sanctioned limit. When Loan is sanctioned the value of security (stock), margin and limit as decided by the Bank are taken into account to arrive at the customer drawing power:
Drawing Power = Minimum (Stock – Margin, Limit)
Drawing power can be changed due to change of stock value, margin and limit at any time.
Change Interest Rate
Interest is fixed and can be changed anytime during the tenor of loan.
Incidental/Account Maintenance Fee and Other Charge
Incidental/Account Maintenance Fee is collected from the account.
Online service charge is applicable
Closing charge is applicable
Special Services except general services
The Special Services except general services that may be provided to the customer by the Bank, these include:
- Loan Ledger Statements
- Interest Calculation Sheet
- Account Closure
Excess Over Limit
Excess over limit may be allowed by the competent authority.
Operational Process after Expiry
There is no restriction for withdrawal in case of credit balance. For debit balance, withdrawal may be allowed by the competent authority. Interest charge will be continued as per rule.
For any query please Contact at: Tel: (PABX) 9551614 FAX: 880-2-9564009 or e-mail us at [email protected]