Cash Credit (Hypo) popularly known as CC(Hypo) that requires mainly for financing procurement of raw materials/stock in-trade.
Cash Credit account is like a current account with a limit up to which one can withdraw from the bank. Cash credit is normally
sanctioned for a period of one year where a regular limit is sanctioned against goods to meet day to day expenses of business.
Time Investment
To meet urgent cash requirement of the business concern in the mode of working capital finance for
procuring local raw materials/stock in trade. Time Investment is given for a specific period matching with
the operating cycle i.e. 30 days for trading and 90 to 180 days for manufacturing concern.
SOD General
Under this, a regular limit is sanctioned to meet day to day expenses of business. This form of credit is given to the business
where maintenance of stock on a regular basis is not possible. Period of SOD(Gen) is usually one year and renewable subject to
satisfactory business transaction. The account is adjusted by the sale proceeds or from own source of the customer.
SOD FO
When overdraft is allowed against lien of FDR or other financial instruments, it is termed as Secured Overdraft (SOD). Secured Overdraft (SOD) facility to the borrower may be allowed generally in the following ways:
Overdraft-against FDR in the name of borrower.
Overdraft- against Scheme in the name of the Borrower.
B. Long Term Finance
Term Investment
Facility is offered to meet credit requirement for any justifiable purposes that usually require long term
installment payment and not directly relate to revenue generation. Sources of repayment will be the sales
proceeds of own source of the customer.
Lease Financing
Under lease financing we cover equipment/vehicle financing. It is a term financing repayable through lease
rental in the form of equal monthly installments (including principal and interest). Ownership of the
leased out equipment/vehicle under the lease agreement covering comprehensive risks belongs to the Bank.
Hire Purchase
This is also given to procure equipment/vehicle. Ownership of the equipment/ vehicle to be purchased under the Hire-Purchase agreement
covering comprehensive risks belongs to both the Banker and the customer. Hire-Purchase facility is repayable by depositing
equal monthly installments (including principal and interest amount).
