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Running a business successfully requires a business owner to streamline their cash flow, ensure the business’s stability, and consistently increase its profits. In order to increase their companies’ profits, business owners must often spend money in the short term by investing in new equipment, purchasing raw material, or hiring new staff. Banks and financial institutions offer various financing options for business owners who wish to borrow money for the short term. Of all these options, cash credit loans are secure and effective options that help business owners fulfill all their business needs.
A cash credit loan is a short-term loan offered by banks and financial institutions to companies in order to help them meet their working capital requirements. Banks assess the credit history and financial stability of businesses before approving their cash credit loan applications. If you are a business owner whose cash credit loan request has been approved by the bank, you can use it for various purposes like purchasing new machinery and business expansion. You can also use the cash credit loan amount to acquire raw material, hire new staff, and consolidate your debt.
Cash credit loans generally have a repayment period of up to 12 months. You can plan for the repayment of your loan in advance by choosing a loan that charges a comprehensive interest rate and by comparing various cash credit loans online before selecting the best one. While signing up for a cash credit loan – given that this is a secured loan – you must also pledge collateral to access the amount. A cash credit loan differs from a personal loan since it is a secured loan unlike the latter. You can easily access your cash credit loan via a bank’s mobile banking app or internet banking services.
Here are the important features of cash credit loans that you must know –
Here are the eligibility criteria and the documents required for you to sign up for a cash credit loan in 2024:
· Eligibility criteria for signing up for a cash credit loan
Please note that these are generic eligibility criteria followed by most banks and financial institutions. You must contact your bank to check if it requires you to fulfill any other criterion –
· Documents required to sign up for a cash credit loan
You will require the following documents to sign up for a cash credit loan –
Here are the features of cash credit that can help you understand how it helps business owners access instant funds –
Here are the key benefits of signing up for a cash credit loan –
If you are a business owner who wishes to grow their business over time, cash credit loans can help you in various ways –
Cash credit loans are an excellent financial tool for businesses seeking short-term liquidity to manage daily operations and support growth. These loans offer flexibility, tax benefits, and a borrower-friendly repayment structure, making them a preferred choice for business owners. However, business owners may have specific financial needs based on their business or personal expenses. For individuals needs, IDFC FIRST Bank offers a range of credit cards with unique benefits on shopping, travel, entertainment, and lifestyle. You can choose an IDFC FIRST Bank credit card that suits your needs and enjoy low dynamic rates starting at just 0.75% per month.
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.