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Bank CC

RUPESH PAWAR (17 Points)

14 February 2024

How much sale and stock should be shown for a Bank CC of Five lakhs ?
Please explain Calculation.

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14 Replies

RAJA P M ("Do the Right Thing...!!!") (127179 Points)
Replied 14 February 2024

This is based on banker's...
Better get details from bank...

or

which bank and bank's format of Stock...

Saravanan nagaraj (463 Points)
Replied 15 February 2024

If your business turnover exceed Rs.30 lakhs(some bankers) or More than Rs.40 lakhs. You can avail OD / CC based on this turnover with security of assets.

Most of the bankers are lending loan based on your stock value and debtors outstanding.

Calculate DP (Drawing Power) value formula. If you want to retain this limit. Workout this formula. Then, You will get an idea.

Thanks 🙏

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86250 Points)
Replied 15 February 2024

Generally CC limit amount is calculated by the bank as a percentage of sale and stock along with financial statements. For example a bank allowed cash credit limit up to 80% of stock plus 20% of sales or turnover of the business. CC limit eligibility of a borrower also depends upon so many other factors like age, income, cibil score, work profile, financial stability, market value of the property, loan to value (LTV) ratio etc.

1 Like

RAJA P M ("Do the Right Thing...!!!") (127179 Points)
Replied 15 February 2024

VERY WELL EXPLANATION FOR BANK CC...

GREAT WORKS...

BUT,

THE QUERY IS PLEASE EXPLAIN THE CALCULATION...
SO, GIVE YOUR REPLY FOR CALCULATION.
IF YOU DON'T THEN BETTER TO COLLECT BANK NAME AND FORMAT OF STOCK SUBMISSION FORM...

NOTE:
I THINK QUERIST NOT ASKED HOW BANKERS GIVE CC LIMIT LOANS...

PLEASE DON'T WASTE OF YOUR KNOWLEDGE FOR EXTRAORDINARY EXPLAINS....

CA Rashmi Gandhi (Chartered Accountant) (86250 Points)
Replied 15 February 2024

I already give calculation= Stock*80%+ Sales *20%

RAJA P M ("Do the Right Thing...!!!") (127179 Points)
Replied 15 February 2024

Ohhh...

You mean this is standard calculation in all banks. right...?!

RAJA P M ("Do the Right Thing...!!!") (127179 Points)
Replied 15 February 2024

Originally posted by : CA Rashmi Gandhi
	I already give calculation= Stock80%+ Sales 20%

What about BOOK DEBTS/ SUNDRY DEBTS for CC Loan...

CA Rashmi Gandhi (Chartered Accountant) (86250 Points)
Replied 15 February 2024

This is not standard, I wrote generally but the confirmation is made by bank itself.

Also if you provide me bank name , I will confirmed you the exact procedure.

RAJA P M ("Do the Right Thing...!!!") (127179 Points)
Replied 15 February 2024

@ Rashmi Gandhi...

This is not standard, I wrote generally but the confirmation is made by bank itself.

---> Why this standard reply...? Why this urgent reply...?? Why thsi kind of common reply...?? and many Whys...??

Please keep and give solution to based on query. Don't fill the blank pages with general reply... That's not a professional activities Madam CA Rashmi Gandhi...

Also if you provide me bank name , I will confirmed you the exact procedure...

---> Ask the querist if You want any additional information about query, after that give correct solution based on query..

Don't be give standard, general and urgent reply.
then what is the difference between You and Others...

Others means some of the ..... persons...

RAJA P M ("Do the Right Thing...!!!") (127179 Points)
Replied 15 February 2024

Originally posted by : CA Rashmi Gandhi
	Also if you provide me bank name , I will confirmed you the exact procedure.

Okay ....

Give me Canara Bank, ICICI Bank and Co Operative bank...

sabyasachi mukherjee (26089 Points)
Replied 15 February 2024

Bank cash credit

RAJA P M ("Do the Right Thing...!!!") (127179 Points)
Replied 15 February 2024

Thank You for gave the Full Form of BCCI @ Sabyasachi Mukherjee...

Yasaswi Gomes new (Finance ) (4484 Points)
Replied 20 February 2024

That Banking book that MBA's studied and became business tycoons is worthless eh!! Some became billionaire respecting MBA programs in India. Even cops like MBA because their children studied in it. MBA is worthless apart from marketing.

1 Like