Lakshmi-Vilas-Bank Personal-NRI Premium-Banking

Cash Credit


LVB extends MSME Cash credit as a short-term loan to meet working capital requirements. We prefer to loan against stocks and receivables to an existing customer. Once a security for repayment has been enlisted, the client MSME can continuously draw from the bank but only up to the specified amount.

Nature of Facility

  • Open Cash Credit (OCC)


  • Working Capital Requirements

Type of Facility

  • Regular running account with multi-city cheque facility, subject to availability of drawing power in the account

Rate of Interest

  • As per bank’s lending policy and based on the credit rating of the borrower


  • Account to be reviewed and renewed every 12 months


  • 25% on Stocks and 50% on Receivables


  • Primary: Hypothecation of Current Assets covered by finance
  • Collateral: Exclusive charge on Fixed Assets equal to the loan amount of the company. For loans up to Rs. 1 crore, coverage under CGTMSE available.


  • KYC documents of the applicant, Promoters & Guarantors
  • Audited Financials for the past three years
  • GST Returns
  • Estimated & Projected Financial Statements
  • All Registrations/Approvals of the business entity
  • Collateral property documents
  • Any other documents as per the requirement