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What’s in store for you

Cash Credit

Commodity Pledge Loan & Cash Credit/Overdraft Facilities

  • These financial services are designed for established traders in the commodity market (mandis) to support their working capital needs.
  • Target Audience:
  • Traders at mandis
  • Other commodity traders
  • Features:
  • Cash Credit and Overdraft facilities are offered based on an assessment of working capital requirements.
  • Borrowers must provide three years of financial statements to the bank to facilitate this assessment.

More About Cash Credit

Cash Credit is a useful financial service that provides businesses with flexible and convenient access to short-term funding. Designed to meet working capital requirements, Cash Credit allows businesses to withdraw funds up to a pre-approved limit as needed, ensuring smooth operations and effective cash flow management.

The key benefits of open Cash Credit Services are:

  • Allows businesses to withdraw funds as needed, up to a pre-approved limit.

  • Helps in managing day-to-day operational expenses and cash flow fluctuations.

  • Repayments replenish the available credit limit, enabling reuse. 

  • Provides immediate access to funds without the need for repeated loan applications.

  • Offers competitive interest rates compared to other short-term financing options.

To apply for Cash Credit Services with HDFC Bank, visit our official website, then navigate to the ‘Wholesale’ section and click on ‘Financial Institution.’ Next, click on ‘Cash Credit’ and follow the instructions.

*The Most Important Terms and Conditions for each of our banking offerings features all the specific terms and conditions that govern their use. You must go through it thoroughly to fully understand the terms and conditions applicable to any banking product you choose.

Frequently Asked Questions

To open a Cash Credit Account with your bank, you typically need to approach your bank branch and submit an application with required documents such as business financial statements, income tax returns, business plans, and KYC documents. The bank will assess your creditworthiness based on these documents and business operations. If approved, you will be granted a cash credit limit against which you can withdraw funds like an Overdraft facility.

Cash Credit Services are revolving credit facilities banks provide to businesses to meet short-term working capital needs. Unlike traditional loans, where a lump sum is disbursed upfront, Cash Credit allows businesses to withdraw funds up to a pre-approved limit as per their requirement. Interest is charged only on the amount withdrawn, offering flexibility and cost-effectiveness. Businesses can repay and reuse the credit limit as needed, making it suitable for managing fluctuating cash flows and operational expenses.

Banks determine the credit limit for Cash Credit Services based on the borrower's financial statements, income tax returns, business performance, credit history, and collateral offered. Factors such as repayment ability, business stability, and market conditions also influence the credit limit decision.