Working Capital Limits

Working capital loans are sanctioned in the form of limits. These can be fund and non-fund based limits to meet day to day requirements of business. The primary collateral that secured these loans is the inventory and book debt/receivables. But it is also not uncommon for these loans to be backed by a secondary collateral, usually a property. CC limit allows you to deposit or withdraw funds as per your convenience. You draw based on the value of your stock and receivables adjusted for the margin as stipulated by the lender. Then you don’t have to worry about repaying the principal. There are no fixed EMI’s and you need to pay only interest on the drawn amount. If you offer property as secondary collateral, the sanction limit cab be as much as 200% of the market value of the property. Similarly, other working capital facilities like Over Draft (OD), Packing Credit Limit (PCL), Letter of Credits (LC) and Bank Guarantees (BG) can be obtained depending on the business requirement.


  • Drawing power is based on your stock and book debt
  • Periodic submission of stock and book debt/receivable statements