To meet the Working Capital & Capital Expenditure of the Service sector, viz traders



Financing of Stock and Book Debts (Not older than four months)



All Enterprises engaged in trading with original investments in equipments as defined under MSMED Act, 2006 – Satisfactory experience of business and having financial statements of atleast two preceding financial years

  • Proprietorship concern;
  • Partnership firm;
  • Private Limited company and
  • Society


Cash credit


Extent of Finance

For Micro, Small & Medium enterprise: Cash Credit:

Minimum – Rs 10 lakh

Maximum – Rs 500 lakh for micro and small enterprises and Rs. 1000 lakhs for Medium enterprises.

In case working capital limit is sanctioned by way of hypothecation of stocks and book debts, the limit under Book Debts should not exceed 50% of total cash credit limit sanctioned.

In case the working capital limit is sanctioned only against hypothecation of book debts then the maximum limit shall be Rs 100 Lakh only (Drawing against advance payment to blue chip companies not more than 50% of the book debts limit)



25% against stocks & BDs




Primary :

Hypothecation of stocks and book debts (not older than 4 months) of the business financed by the bank.


Collateral :

Minimum 110%(Market Value) of the loan amount in the form of mortgage of immovable property and/or other liquid security duly charged to the bank.


Method of Assessment

Need Based combined limit (Stocks & Book Debts) for working capital requirement be fixed as per Nayak Committee recommendations i.e 20% of sales turnover.

The projected turnover/receipts from the activity of the units should be assessed objectively. Generally the projections accepted should not be higher than 30% Compounded Annual Growth Rate (CAGR) unless there is a past track record of higher CAGR.

In case of seasonal business, higher/lower limits for busy/slack season can be set up keeping in view the past trend


Rate of Interest

ROI is linked with market value of collateral security


Processing Fees & Documentation Charges

As applicable.



On demand/ Cash credit limit shall be sanctioned for a period of one year and shall be subject to review/renewal annually.