Working capital facility includes both fund and non-fund based products. Fund-based working capital products include cash credit, packing credit, short-term loans payable on demand, inland/export bills discounting, export and import financing and commercial paper. Non-fund based products include letter of credit and bank guarantees.
Working Capital facility is a loan for SME & Corporate to meet out the Working Capital cycle as well as day to day activity expenses for production.
Cash Credit is primarily secured by way of Hypothecation of Stock of Goods - Raw Material, Work-in-progress or Semi Finished Goods, Finished Goods and Debtors and all other Current Assets of the business generated during the course of business.
Cash credit can also be secured by way of offering adequate Collateral Security in the form of Immovable Properties acceptable to the bank.