Cash credit is a cash advance given to an organization. The bank gives the subsidizing simply after they get the obliged security to secure the credit. At the point when the security has been given, the organization can constantly draw cash from the bank to as far as possible set by the bank.

Union Bank helps you in meeting the assets required for everyday operations of your business either by direct financing or by method for issuance of Letter of Credit. We subsidize the pre deals and additionally post deals working capital prerequisite.

Pre Sales Working Capital

Financing your crude material, completed merchandise and book obligations/receivables as Cash Credit (Hypothecation) limit

Post Sales Working Capital

Financing of Bills drawn on your clients by method for Inland/Foreign Bills Purchase/Discount Limits

The accompanying table mirrors the speculation roofs for characterizing Micro, Small and Medium Sector Enterprises :

Characterization

Fabricating Sector(Investment in P and M)

Administration Sector(Investment in Equipments)

Miniaturized scale Enterprise

Upto Rs 25.00 Lacs

Upto Rs 10.00 Lacs

Little Enterprise

More than Rs 25.00 Lacs upto Rs 5.00 Crores.

More than Rs 10.00 Lacs upto Rs 2.00 Crores

Medium Enterprise

More than Rs 5.00 Crores upto Rs 10.00 Crores

More than Rs 2.00 Crores upto Rs 5.00 Crores


Margin / Collateral Requirements

Margin Requirements

Promoter’s contribution (margin) is basically a commitment of the promoter towards the project.
The margin amount may differ from borrower to borrower as well as on the basis of asset class to be financed.
Hence after taking into consideration the bankability of the project, the bank may stipulate suitable margin requirement.

Collateral Requirements:

Credit assistance to MSEs upto Rs.10 lakhs is extended without any collateral securities
Collateral free financial assistance above Rs.10 lakhs and upto Rs.100.00 lakhs is extended to Micro & Small Enterprises as per operational guidelines
All the eligible collateral free loans extended to Micro & Small Enterprises borrowers are covered under Credit Guarantee Scheme of Credit guarantee Fund Trust for Micro & Small Enterprises (CGTMSE)
For financial assistance above Rs.100 lakhs to Micro & Small Enterprises, collateral security requirement is decided on case to case basis on individual merits considering various factors including risks related to the activity after conducting due diligence about the promoters
In other cases the quantum of collateral coverage is decided based on the activity and risk involved with the activity / promoters
However quantum of collateral is not a hurdle while extending financial assistance to MSMEs in general