Cash Credit
Cash Credit Scheme offers working capital against hypothecation of stock such as raw materials, work-in-process, finished goods, stores and spares, stock in trade, book debts etc., to units under Micro, Small and Medium Enterprises (MSME) Sector, with full coverage of Primary Security
Purpose
- Working capital finance for Traders.
- Working capital finance for manufactures.
- Working capital finance for Service providers
Eligibility
- Borrowers can be Individuals, proprietary, partnership concerns, SHGs, Companies, Trusts in MSME segment (service units) engaged in contractor/sub- contractor activity and falling within the meaning of Micro, Small & Medium Enterprises as defined in MSMED Act, 2006
- Borrower should have satisfactory dealings with the Bank
- For new units, size and turnover will be considered in order to estimate the eligible limit
Limit & Margin
Limit
- Minimum loan amount is Rs. 1 lakh
- Eligible limit is sanctioned on the basis of Working Capital requirement, upto 20 % of turn over.
- For new units, loan limit will be 80% of the working capital arrived under Operating Cycle Method.
Margin
- A margin of 5% needs to be invested by the borrower.
- For new units, margin will be 20% of the working capital arrived under Operating Cycle Method.
Security
Up to Rs.1 lakh
- Hypothecation of assets
- Coobligation of a worthy person
Above Rs.1 lakh
- Hypothecation of assets
- Collateral security of Immovable property
- The value of Collateral security should not be less than 150% of the working capital limit.
Repayment
- Cash Credit loans are tenable for 24 months subjected to annual Review.
Interest Rates & Charges
- Please visit Loan interest rates page for details.
- Working capital finance for Traders.
- Working capital finance for manufactures.
- Working capital finance for Service providers
- Borrowers can be Individuals, proprietary, partnership concerns, SHGs, Companies, Trusts in MSME segment (service units) engaged in contractor/sub- contractor activity and falling within the meaning of Micro, Small & Medium Enterprises as defined in MSMED Act, 2006
- Borrower should have satisfactory dealings with the Bank
- For new units, size and turnover will be considered in order to estimate the eligible limit
Limit
- Minimum loan amount is Rs. 1 lakh
- Eligible limit is sanctioned on the basis of Working Capital requirement, upto 20 % of turn over.
- For new units, loan limit will be 80% of the working capital arrived under Operating Cycle Method.
Margin
- A margin of 5% needs to be invested by the borrower.
- For new units, margin will be 20% of the working capital arrived under Operating Cycle Method.
Up to Rs.1 lakh
- Hypothecation of assets
- Coobligation of a worthy person
Above Rs.1 lakh
- Hypothecation of assets
- Collateral security of Immovable property
- The value of Collateral security should not be less than 150% of the working capital limit.
- Cash Credit loans are tenable for 24 months subjected to annual Review.
- Please visit Loan interest rates page for details.
Kerala Gramin Bank is a Regional Rural Bank in Kerala with massive rural penetration.
Even though the bank is a Regional Rural Bank, KGB delivers all the major functionalities of
a PSB. The major focus of the bank is to initiate appropriate intervention for overall
economic upliftment and advancement of the people of Kerala by giving financial assistance
to the sectors like Agriculture, Micro, Small and Medium Enterprises, education, housing,
micro-credit, weaker sections, SC/ST communities etc.
RECURRING DEPOSIT