Loans

Vasavi Cash Credit

Vasavi Cash credit is a facility to withdraw money from a account without having credit balance but limited to the extent of borrowing limit, which is fixed by the bank. The interest in this facility is not charged on the borrowing limit, which is given by the bank but on the daily closing balance.

Features of Vasavi Cash Credit Loan

• One can avail a Vasavi cash credit loan to meet the working capital requirements of a business
• The borrower will have to provide collateral or security in order to avail a Vasavi cash credit loan
• Interest is levied only on the loan amount availed by the borrower and not on the credit amount sanctioned
• Vasavi Cash credit loan is a short-term loan whereas decided by the lender, the loan can be repaid on a monthly or on a quarterly basis
• The applicant has the option of withdrawing the required amount as sanctioned by the bank in order to meet their day-to-day needs
• A cheque book is issued by the bank in the name of the company, where the latter can withdraw the required amount as per its requirement
• The borrower will have the option of repaying the loan on either a daily or weekly basis, or as per the repayment structure designed by the lender.