Andhra Bank
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Toll Free Number : 1800 425 1515

 
Open Cash Credit
 
  Purpose


For working capital needs of MSME units

 
  Assessment of limit


Depending on the Working capital requirement of the unit assessed as per Turnover Method/ MPBF System/ Cash Budget System

Drawings from the account shall be against Drawing Power arrived based on Stocks such as Raw materials, work-in-process, finished goods and Book debts.

 
   Minimum Margins


20% to 25% in case of Stocks and 30% in case of Book debts / Receivables.

 
  Security

Primary security: Stocks and receivables

Collateral security: Upto Rs.10 lakhs   : Nil
Above Rs.10 lakhs Land &
Buildings, Plant & Machinery,
other fixed assets as per Bank norms.

 
  Co-obligation/ Guarantee


Upto Rs.10 lakhs   : Not required

Above Rs.10 lakhs : Suitable Third party guarantee as per Bank norms.
 
  Tenor of Loan


Limits are renewable every year

 
WORKING CAPITAL DEMAND LOAN FOR MSME UNITS
 
  Purpose


To meet need based adhoc working capital requirement

 
  Eligibility


Existing MSME borrowers having overall fund based credit facility upto Rs.10 crore

 
  Quantum 


20% of the existing fund based limit

 
  Margin


Same as existing margins to present working capital limits

 
  Co-obligation/ Guarantee


Continuation of existing Co-obligation/Guarantee

 
  Security


Primary: Stocks and receivables
Collateral: Continuation of existing collateral securities

 
  Repayment


One year with a provision of moratorium of six months, during which only interest will have to be serviced