A Secured Cash Credit is a short-term source of financing for a company. OR Cash credit is a short-term loan extended to a company. 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 is charged on the amount borrowed and not the borrowing limit.


Source of working capital financing A cash credit is an important source of working capital financing, as the company need not worry about liquidity issues.

Easy arrangement It can be easily arranged by a bank, provided that collateral security is available to be pledged and the realizable value of such is easily determined.

Tax-deductible Interest payments made are tax-deductible and, thus, reduce the overall tax burden on the company.

Eligibility Criteria for Secured Cash Credit Loan

The eligibility criteria for Secured Cash Credit

  • Age Criteria: Min. 18 years & Max. 65 years
  • Business Vintage, Annual Turnover and work experience to be defined by lender
  • Good CIBIL score and repayment history
  • No previous loan default with any financial institution
  • Indian citizen with no criminal background

How To Apply For An Secured Working Capital Loan?

At SME Paisa, you can apply for Secured Cash Credit Loan online or offline. Walk into our nearest branch office for a free consultation and guidance regarding an ideal funding option suiting your needs. Or, you may choose to apply online and get an instant approval for funds. Remember to keep a soft-copy of documents required for Business loan ready for upload in case of an online application

Document Required for Secured Working Capital Loan

The list of documents required for a Working Capital loan application includes:

  • PAN Card
  • Passport Sized Photographs
  • Identity, Address and Income Proofs
  • Last 3 years’ ITR and Income statement
  • CMA (Credit Monitoring Arrangement) report, if business turnover exceeds ₹ 5 cr
  • Last 2 years’ audit report financials
  • Partnership deed
  • Certificate of registration
  • Certificate of incorporation
  • Name of all the present directories on company letterhead
  • Memorandum of Association (MoA) and Articles of Association (AoA)

Frequently Asked Question

Your loan can serve a variety of needs, everything from home renovation to debt consolidation and more.

If all your documents are in order the loan should be credited to your account in 24 hours.

Yes, but it comes with a marginal charge. You can read about it

Loan is a term-loan offered by a financial institution at defined interest rate to be repaid within specific tenure. Whereas, cash credit is a short-term working capital loan in the form of a credit limit offered by a bank to an enterprise.

We offer competitive interest rates for our loan facilities. The interest for each loan is determined based on assessment of your business profile, past track record, financial records, loan amount required and tenure of loan.