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Working Capital Finance

Types of Working Capital Finance

Cash Credit Limits (CC Limits):-
Cash Credit is the primary method in which Banks lend money against the security of stock and debt. It runs like a current account except that the money that can be withdrawn from this account is not restricted to the amount deposited in the account. Instead, the account holder is permitted to withdraw a certain sum called "limit" or "credit facility" in excess of the amount deposited in the account. Cash Credits are, in theory, payable on demand. These are, therefore, counter part of demand deposits of the Bank.

OD Limits:-
Overdraft (OD Limit) is also a different kind of bank account where the account holder withdraws more money from a Bank Account than has been deposited in it.

The difference in both of these CC and OD limit bank accounts is very subtle and relates to the operation of the account. In the case of Cash Credit, a proper limit is sanctioned which normally is a certain percentage of the value of the commodities/debts pledged by the account holder with the Bank. Overdraft, on the other hand, is allowed against a host of other securities including financial instruments like shares, units of mutual funds, surrender value of LIC policy and debentures etc. Some overdrafts are even granted against the perceived "worth" of an individual. Such overdrafts are called clean overdrafts. 

We arrange to obtain both CC and OD limits based on the criteria set down by the paying Banks and Financial Institutions. We deal with all major Banks and Financial Institutions including all major PSU, Private and Foreign Banks presently operating in India.
All these Banks compete to give their Best Rates and you get the advantage of getting our services of managing and negotiating all for your benefits.
We do it fast as well. We do it for you in just three steps:

  1. Analyze Your Loan Requirement by just discussing with you
  2. Get & Compare offers from all Banks and Financial Institutions by just getting best interest rates and negotiating the terms beneficial to you.
  3. Go with the Lowest Bidder.

The loan amount sanctioned depends on a host of factors. You can get loans up to 60% of market value of residential properties and 50% market value of commercial properties. The loan can be used by proprietors, self employed professionals, partnership firms and private limited companies.

Documents Required:-

  1. Completely filled Application Form
  2. Passport size Photograph (Proprietor / all Partners / Directors)
  3. Proof of Identity - PAN Card/ Voters ID/ Passport/ Driving License
  4. Proof of Residence - Recent Telephone Bill/ Electricity Bill/ Property Tax Receipt/ Passport/ Voters ID
  5. Proof of Business Address in respect of Businessmen / Industrialists
  6. Sale Deed, Agreement of Sale, Letter of Allotment, Non Encumbrance Certificate, Land/ Building Tax paid receipt etc. (as applicable and subject to satisfaction report from our empanelled lawyer)
  7. Copy of Approved Plan and Approval from the Local Body
  8. Statement of Bank Account/ Pass Book for last 6 months

Pre-Shipment finance (for Exporters)

This facility provides liquidity for procuring raw materials, processing, packing, transporting, warehousing of goods meant for export. Pre-shipment finance is extended in the following forms :

  1. Packing Credit in Rupees (Export Packing Credit / EPC)
  2. Packing Credit in foreign currency (PCFC)

Documents Required:-

Irrevocable LCs / Export Orders / Track Record with submission of proof of Export order 


Inventory - Ranges up to 25 % against Inventory

Interest Rate:-

  1. In case of PCFC, Interest Rate Ranges between 2 % to 3.5 % above LIBOR prevailing on each disbursement date of facility.
  2. In case of EPC, Interest Rate ranges between 7 % to 7.50 %.( Indicative)

Post-shipment finance

It is a credit facility extended from the date of shipment of goods till the realization of the export proceeds. The different types of post-shipment advances include: 

  1. Export bills purchased / discounting (Non- LC)
  2. Export bills negotiated (against letter of credit) 
Exporters have the option of availing Post-Shipment finance either in rupees or in foreign currency. 

Post Shipment in Foreign Currency (FBP / FBD / FBN)

Documents Required: Export Documents.

  1. Interest Rate: Ranges 2 % to 3.5 % above LIBOR prevailing on each disbursement date of facility in case of facility in USD or foreign currency. (Indicative) 
  2. Interest Rate: Ranges 7 % to 8.5 % in case of INR.(Indicative) 


  1. Charge on Current Assets & Fixed Assets.
  2. Personal Guarantee of Promoters / Directors.
  3. Equitable Mortgage of Property ( 50 % to 70 % Cover )

Cash Credit


Satisfactory Internal Credit Rating 
Preferably working capital cycle up to 6 months 

Margin (indicative)

First Charge on inventory and  receivables. 


  1. Charge on the inventory and receivables.
  2. Charge on other current assets, wherever possible
  3. Personal guarantee of promoters / directors.
  4. First / second charge on fixed assets.

Interest Rate

Ranges between 12 to 13.5 %.(Indicative) 

Overdraft Facility

Process Flow

  1. The Corporate raises supply bills on the dealer.
  2. The dealer accepts & forwards the supply bills and also provides a post dated cheque (PDC) upfront along with the accepted bill.
  3. The bills and the PDC are collected by the Company either centrally or at regional centres and submitted to the bank for discounting.
  4. The PDC is warehoused by the discounting branch.
  5. The bank discounts the bills and disburses the amount directly to company.
  6. On date of maturity the PDC is collected by Bank's CMS system and the advances liquidated.

Locate Us

Phone Number: +91-95995 16999

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Locate Us

Ludhiana: SCO 13, Second Floor, Shanghai Towers, Adjoining B-7, Feroze Gandhi Market, Ludhiana

Phone Number: +91-95995 16999