This account is the primary method in which Banks lend money against the security of mortgage of immovable properties. It runs like a current account except that the money that can be withdrawn from this account is not restricted to the amount deposited in the account. Instead, the account holder is permitted to withdraw a certain sum called "limit" or "credit facility" in excess of the amount deposited in the account. Cash Credits are, in theory, payable on demand.

• Purpose
• To meet the credit needs of trade, commercial activity, other general business, real estate as also for their bonafide requirements.
• Eligibility
• Persons having membership in the Bank, engaged in trade, commerce and business, Professionals, Self-employed, Prop. Firms, partnership firms, individuals with high net worth, salaried people, agriculturists, business establishments etc.
• Security
• The CC accounts are fully secured advances and sanctioned on the basis of:
• Mortgage of immovable properties OR
• Pledge of gold ornaments OR
• Hypothecation of plant and machinery, stock of goods
• FD receipt etc.
• Normally, the CC is sanctioned against the security collateral immovable property such as land and building. The sanctioning amount will be limited up to 50% of the valuation of the collaterals.
• If the CC is sanctioning on the basis of security of mortgage of immovable properties, the following documents must be produced and retained in the Bank:
• The original document of the property.
• Back documents of the property or its duly attested copies.
• Possession certificate of the property.
• Encumbrance certificate of the property for the last preceding 15 years without any breaks.
• Revenue Tax receipts of the property .
• Purchase certificate issued by the revenue authorities (if found necessary).
• Copy of the identity card as per the KYC norms.
• Location map.
• If the CC is sanctioning on the basis of pledge of gold ornament the applicants need to submit the gold ornaments and the credit limit will be sanctioned up to 80% of the market value of the pledged gold ornaments
• If the CC is availing based on the hypothecation of the plant and machinery, the following conditions have to be fulfilled.
• CC facility under the above category will be paid at the maximum of 50% of the value of goods, mercantile, raw materials, furniture and fittings etc.
• The valuation will be on cost price.
• The Manager should visit the business site and satisfy himself / herself the stock and their cost based on documents.
• A detailed list of items to be pledged or hypothecated with the bank should be collected and a hypothecation agreement must be obtained.
  
• The machinery /stock should be insured for the cost price in the joint name of the bank and the borrower.
• The stock of goods hypothecated should not be of perishable nature and machinery, tools and equipments should not be out dated.
• Procedure
• Submit application with necessary documents and security.
• After verification the Branch will submit the application to HO with their recommendation.
• After getting legal opinion HO will sanction the loan and issue orders.
• Charges and other costs
• The charges levied are forms, insurance, notice, legal fee, valuation charge and miscellaneous charges. Please visit the page of service charges in this site
• Period
• Upto 12 months
• Eligible amount
• Maximum Rs. 50,00,000/-
• percentage of share linking is 2.5 %
• Repayment
• The CC is a running accounts facility where deposits and withdrawals are permitted. Interest will be payable only to the amount withdrawn from the account.
• Customers are free to repay part amount of loan and/or accrued interest thereon at anytime. At the end of every month, Interest is calculated on daily balance outstanding.
• Rate of interest
• To see the interest rate please visit the page of Interest rate in this site. The overdue penal charge is 2% .