Quick Answer: What Is BLG In Banking?

How does cash credit work?

A cash credit loan allows a company to withdraw money from a bank account.

You can withdraw as many times, but up to its withdrawal limit.

The borrowing limit is decided on the basis of the applicant’s credit history or creditworthiness, which is based on the company’s structure of the current assets and liability..

Which is better cc or OD?

Cash Credit and Overdraft are referred as credit limit sanctioned by lender or bank. Both of these financial instruments are used to borrow money against hypothecation of inventory or financial statements….What is the difference between Cash Credit and Overdraft?Cash CreditOverdraftInterest rate is lower as compared to OverdraftInterest rate is comparatively higher8 more rows•Oct 16, 2020

What is difference between CC account and OD account?

Cash credit is a short-term business loan. It is meant for entrepreneurs wanting to get quick working capital. An overdraft facility, on the other hand, is a long-term financial assistance. It lets you withdraw money from your account even with zero balance.

What do you mean by business vintage?

What exactly do they mean Vintage? Vintage is how long your business has been in operations. Typically, lenders consider businesses who are in operations for at least 3 years.

What is a vintage in finance?

Vintage is a colloquial term used to describe mortgage-backed securities (MBS) that have been “seasoned.” That is, they’ve been issued long enough, and enough on-time payments have been made, that the risk of default is lower. Vintage is the age of an item as it relates to the year it was created.

What is the meaning of INFT?

Institute of Nutrition and Food TechnologyINFT. Institute of Nutrition and Food Technology.

What documents are required for cash credit?

Documents RequiredDuly filled application form.Business plan.PAN card.Passport-sized photographs of the applicant.Identity Proof: Passport, Driving License, Voter’s ID card.Residence Proof: Voter’s ID card, Driving License, Passport, Ration Card, Telephone Bill.More items…•

What is bil in banking?

BIL – Internet Bill payment or funds transfer to Third party.

How can I get business loan from Icici Bank?

Documents required. Financial Documents needed to apply for Business Loan.Charges Applicable. Rate of Interest & PF Charged.Eligibility calculator. Know your EMI Calculation & Tenure.Loan Application Status. Check which stage your application is ccurrently.

What is cc limit?

Cash credit limit or CC limit is a kind of current account with cheque book facility. … CC limit holders offers stock and debtors as primary security to the bank. A CC limit or cash credit limit allows you to withdraw money or issue cheque up to the approved CC limit, even if there is no balance in the account.

What is the meaning of cash credit account?

2 As mentioned above, cash credit is a short-term financing solution a business customer has at their disposal. If the customer doesn’t have enough funds in their account, they can use the cash credit for routine banking transactions up to the credit limit.

What is bil rev PMT ID?

It’s basically means “Reverse Payment ID ######”. for ex. You have booked a train ticket and than your mood changed you had asked for a refund. So, this amount will be credited to your bank account. As a statement description of “rev pmt id 2222222”.

How do I apply for cash credit?

Many lenders now allow online applications for cash credit loans. You have to visit the website of the bank and apply for a loan based on your requirements. The process is easier if you borrow from the bank where you have your business account. You may also visit the company directly and apply for a cash credit loan.

What is cc account and how it works?

A Cash Credit (CC) is a short-term source of financing for a company. In other words, a cash credit is a short-term loan. … It enables a company to withdraw money from a bank account without keeping a credit balance. The account is limited to only borrowing up to the borrowing limit. Also, interest.

What is business Vintage proof?

Bank statements from the last 6 months. ITR statement from the last year as well as audited balance sheet and P&L statement for the past 2 years. Vintage proof or continuation proof which includes ITR, Trade License, Establishment Registration or Sales Tax Certificate. Cash Flow statements. Debt Obligations.

How do banks give cash credit?

Under the short-term finance option, the bank offers its applicant to take a loan up to a certain limit depending on their credit history. This allows the customer, typically a business or company with a proven track record of profit, to withdraw money which is more than the balance available in their accounts.

What documents do I need for business loan?

10 Documents Required by Most LendersBank Statements. … Tax Returns. … Proof of Business Registration. … Business Licenses and Permits. … Employer Identification Number (EIN) … Financial Statements. … Accounts Receivable Aging and Accounts Payable Aging. … Details of Your Other Loans.More items…•

What are professional loans?

Professional loans are loan facilities granted to working professionals like doctors, lawyers, chartered accountants, architects, etc. who are looking for funds to start their own practice or expand their trade. A lot of people often confuse a professional loan with a business loan.