PRODUCT PURPOSE/DESCRIPTION
This is a flexible short term (not more than 12 months) Working Capital Financing on a current account, repayable on demand.
| Loan amount | • No Minimum loan amount but will be dictated by business needs.
• Maximum overdraft multiplier: 25% of annual turnover, or within the business net cash cycle, whichever is shorter
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| Security | • As per collaterals defined in the Bank Credit Risk Policy |
| Maximum tenor | • 12 Months |
| Account conduct | • Maximum five inward unpaid items in the last 6 months
• Maximum three unauthorized excess drawings in the last 6 months |
| Method of Repayment | • Credits made to the account where the Overdraft is marked |
| Documentation | • As per the checklist |
BENEFITS
- Once the limit is approved, the overdraft can be utilized at the business’ prerogative without seeking approval at each drawdown.