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
|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|
- Once the limit is approved, the overdraft can be utilized at the business’ prerogative without seeking approval at each drawdown.