Lecture 26: What is working capital demand loan
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- Опубліковано 15 вер 2024
- This video will cover detailed understanding of Working capital demand loan (WCDL) product offered by the banks to its borrowers.
This will also cover:
1. Concept of Main limit and Sub-limit in working capital finance.
2. Advantages of WCDL facility to both borrower and the banks.
3. Method of operations of WCDL facility in banks.
4. Advise to borrowers as to when to exactly use the benefit of WCDL facility.
#Workingcapital #Workingcapitaldemandloan #Finance
This is the best video explanation on Working Capital Demand Loan. Thanks a lot for sharing such knowledge at no cost.
Your welcome Harshita.
Sir i have been into foreign exchange and payment gateways and had little idea in working capital,but your videos are in so much detail and your clean and concept building way of explaination is really of great help.Thanks a lot and keep making such good videos on as many topics as you can.
Thank you 😊
Thank you so much sir for clearing this concept in a very simple language
Your welcome
Thanks Sir, normally we have all financial knowledge but don't know banking products in depth your lectures are must for every banker
Thank you
Comprehensive explanation! Helped clear my concept. Thank you!
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VERY NICE TEACHING WITH CONCEPT CLEAR
🧡🙏👏
Thank you
Explained really well!!!
Thank you
What a great explanation 😊
Thank you
It's not always on customer whether he want to avail WCDL or not....RBI has also put guidelines that if your limit is more than 150 crore you have to avail WCDL without any option....
Thank you mukul for sharing important information here.
In both cases individual and consortium ?
Sorry, couldn't understand your question
Means to say that how the limit of 150 crores is calculated in case of consortium loan?
Combination of limits across all banks in consortium
Very well explained brother 👏👍
Thank you
Best explanation 👌
Thank you Suresh
Great lecture sir
Thank you 👍
Sir, can you clarify one doubt of mine? All the churnings whether credited in CC account or to WCDL A/c. Or no credit will be to the WCDL account. Request to pls clear my doubt.
There cannot be any churning in wcdl account.
Good work... Keep it up Ankush 👍👍
Thanks Saurabh.
Whether WCDL can be granted to customers having Export packing credit Facilities
In General CC limits is it necessary to repay bullet payment in WCDL from own sources rather by debiting CC limit
Whether WCDL Facilities to be part of sanction first, than only we can give benefit to customers
Yes wcdl in foreign currency can also be give. This facility need to be part of sanction firsy
Drawing power requirement is there or not in WCDL compare to CC.
A company availed 100cr CC from Bank and as sublimit WCDL of 50cr . Now if company uses 50 cr WCDL and 50 cr CC then Drawing power will be calculated for Entire 100 cr or on 50 cr of CC i.e. after deducting 50 cr of WCDL
Drawing power shall be calculated in total
Certain clients dont utilise od limits to 80% even...do we havs any alternate option liks wcdl for od limit
No. You can give wcdl of even 20% also
Superb Lecture
Thank you
Like WCDL, can we use single shot big payment of say 80 L out of CC limit of 1 Cr?
Yes as it is sublimit only
Thanks for this🙏
Your welcome
Knowledgeble
Thank you
sir please make a video on PSL and its category specially MSME. This one is very much in demand in working captail . A detailed one even if 3 -5 videos are acceptable.
Ok
thank you sir
Your welcome
Sir, can wcdl avail for less than 90 days also like 15, 20 days
Yeah depending on internal policy of the banks
Sir, I have questions 1st cannot WCDL limit be opened as main limit? what are the reasons of lower ROI? How the WCDL is assessed same on the basis of MPBF or Turnover? What is WCTL? Is WCTL opened as Sublimit of Existing Term Loan?
Wcdl can be main limit and assessment is same like limit.. wctl cannot be a sublimit
Sir, in case of WCDL, can we do additional transactions from that account? If not, we are transferring a said limit to WCDL from CC account we arent we limiting the usage of of CC account without any benefit to customer and only paying the interest on it?
No, first wcdl is used and its amount is credited in cc limit and then on due date, cc account is debited and the amount is paid in wcdl. Interest rate is lower in wcdl. This is beneficial for those clients who always has minimum limit utilisation of 80% always. Otherwise if a customer's limit utilisation is fluctuating and goes to lower levels also occasionally then that customer will not be in an advantageous position by taking wcdl
Super sir 🙏
Thank you
is it fine to use one WCDL to closure another WCDL
When wcdl is sublimit is never happens since mail limit is cc
Sir will the full disbursement of 80 lac WCDL be dependent upon available drawing power in the main CC account ?
Yes
Whether direct summations from debtor or payment to crs can be received/paid in WCDL a/cs???
WCDL is bullet repayment account. No transaction can be done in it
@@AnkushJain so how can we know actual month wise utilisation of cc account , if wcdl is sublimit of cc a/c ??
You need to check wcdl availment from cibil and credits/debits in bank account
What is difference between stl and wcdl
Short term loan mein tenor upto 12 months TK ho skta hai generally but wcdl mein 90-180 days tk hota hai...
Wcdl mein bullet repayment hoti hai jabki stl mein emi bhi lga skte hain...
Wcdl usually as sublimit Diya jata hai of od/cc to save interest cost and ye usually over and above total exposure nhi hota, jbki stl ik separate line hoti hai to meet emergency needs and stl mein roi bhi normal lgta hai
Thanks
Your welcome
Hi! Sir....sir , do we not take monthly stock statement in WCDL ..I mean do we takry stock statement only for Sub -CC limit in WCDL and not for WCDL?
Stock statements applicable for CC limits only. However utilisation of wcdl is deducted while computing Drawing power in stock statement.
@@AnkushJain ok.. thanks sir
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Sir can wcdL can be given as a standalone limit without any other limits?
Yes it can be given
Sir I want to ask about the assessment part of WCDL...how to assess Quantum and tenure.
Assessment is in line with the parent limit i.e CC or OD limit.
Generally WCDL are given max. 80% of the cc/od limit. Some bank's allows higher or lower % depending upon internal policy. Tenor generally is of 90 days however some banks also allow upto 6 months tenor
Sir, if the customer has availed WCDL then the transactions like payment from debtors, payment made to suppliers will be done from WCDL account?
No, it will be done from CC account only
@@AnkushJain As per the example taken in the video i.e the CC limit is 20 lacs and WCDL is 80 lacs and now suppose a firm has to make a payment to supplier of Rs 50 lacs then will he be able to do it from CC account?
Yes he can. Pl understand that WCDL amount of 80 lacs will get credited in cc account only. Therefore customer will have 80 lacs funds in cc limit
@@AnkushJain Oh! Okay got it👍🏻
Thanks for your unwavering patience and time to make us understand everything in depth and detail..
👍
Can we sanction WCDL as main limit?
Yes
What can be the max. Period may it be for 8 months
Depends on internal policies. It can be 12 months also but not more than it. However I have not done for 12 months myself but I have heard that it is given by some banks
Sir its means WCDL purpose is lower interest rate .... WCDL se creditors ko payment nj kr sakte but agar cc limit se karenge to uski limit to 20 lakh hai baki to WCDL me trf kr di to kya karenge sir WCDL se fir cc me trf karenge for creditors payment ??
Wcdl ki disbursement cc limit mein hoti hai so cc limit ka balance to km ho hi jayega
@@AnkushJain sir then hm creditors ko payment kaise karenge ?? Purpose WCDL ka bs interest km krna hota hai ??
Yes and for bank isse client ki utilisation fix ho jaati hai and bank earn krta hai
@@AnkushJain thnku sir
Your welcome
Kya WCDL ko takeover kr skte hain aur OD de skte hain?
Yes since WCDL is for working capital purpose and Is upto 12 months tenor. Please confirm whether Wcdl was sublimit of cc/od or separate individual limit?
@@AnkushJain bank has sanctioned 20 mn that is OD 10 Mn and WCDL 10 mn... Customer has availed the same..
So it means Wcdl is separate limit. Please check here that whether customer is able to knock off the Wcdl on due dates? Sometimes in such scenarios, due to liquidity crunch and risk of default of Wcdl on due dates, customers asks other banks to provide od instead
@@AnkushJain thank you Ankush... You are a very knowledgeable person...
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Wcdl loan jo cc or od ke sath hi de sakte hai only
Yes unke sath hi hota hai but iski alag limit bhi de skte hain
Sir, is stock statement required in WCTL?
Mostly banks do not do standalone wcdl and there must be some other facility as well. But hypothetically if I presume that wctl is only facility running then stock statement will not be required
Sir, the loan C.C has been restructured in OTR-COVID to WCTL,then stock statement is required?
No since only wctl is there. Stock statement is not required
What is the meaning of rollover of wcdl?
Means extension of timeline
In one case it was rollover of wcdl due in Feb 24 and Mar 24 till Apr 15 bcoz client has liquidity issue.
So it means extension till 15 Apr for bullet repayment of wcdl due in Feb and Mar.Is my understanding correct,Sir?
After every 90 days for opening new wcdl account does we need to renew/ sanction fresh facility.
In one of the case RM has propose the CC/WCDL but committee agreed only for WCDL as the only limit and refuse to give CC.what can be the rationale here?
No we don't need to renew since it is a revolving facility
Sir cash flow and takeover amount kaise karte hai
Main samjha nahi... Thoda detail mein likho k kya confusioj hai
Hi sir
How to calculate FOIR FOR LOAN
Refer this playlist
ua-cam.com/play/PLjlclsu02a_w8vi8Hh-aSck_FD8c9QnBy.html&si=z2g8ki2XbS-RKGsy
Thank you sir
Your welcome
Sir can we covert total outstanding limit of cc in to wcdl without creating any sublimits
No
Sir Can it convert to wctl sir in case of CC was fully utilised and customer
You can convert it to 12 months wctl. Otherwise it will amount to restructuring
Thanks sir
Expecting Vedio on account churning related to overdraft and cc sir
Sir OD ki calculation kaise hogi..??
Please watch mpbf calculation videos
Is FCTL working is same like WCDL
Not WCDL. It works like TL
@@AnkushJain if it is provided as sublimit to SODRE for working capital ,for import paymeny
Payment
FCTL can not be sublimit of of. It has to be separate line only
Maximum tenure kitna hota hai wcdl ka
3 to 6 months
Fscm 😊
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Sir I want also Job in working capital
Pl check vacancies posted by me
Hi What is FTP rate
Not aware about it