Lecture 25: Difference between Cash credit, Overdraft and Drop line overdraft facility.

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  • Опубліковано 4 лис 2024

КОМЕНТАРІ • 198

  • @vinayrai2504
    @vinayrai2504 8 місяців тому +2

    Really too good video i have never seen this type of explanation regarding CC,OD,DOD
    Thank You So Much

  • @raajjagtap393
    @raajjagtap393 Рік тому +5

    I wish bank employee see this and learn. Most of them cant explain DOD . You are very good at this sir.

  • @prashantchauhan2895
    @prashantchauhan2895 Рік тому +2

    God bless you many thanks for all your videos on working capital

  • @amolayush
    @amolayush Рік тому +4

    Such an interesting video with clear concept. Thank you for sharing.

  • @shivjha2010
    @shivjha2010 3 роки тому +5

    sir you really the best. you have made these video with great explanation

  • @prakashpareek2762
    @prakashpareek2762 2 роки тому +2

    Very knowledgeable.. Thanks for sharing

  • @samikshakolge1605
    @samikshakolge1605 Рік тому +4

    Such an interesting video! Cleared my concepts. Thank you.

  • @rishabhpatel1767
    @rishabhpatel1767 День тому +1

    This is gold

  • @nomadicbysoul273
    @nomadicbysoul273 2 роки тому +2

    Watched most of your videos and it really helped... thank you Sir 🙏

  • @smg1913
    @smg1913 Рік тому +1

    Bahut achha laga sir

  • @rishirajtank5577
    @rishirajtank5577 Рік тому +3

    How to calculate assess income
    Like daily Kirana store, Vegetables sellers, Fruit sellers, Auto drivers, Taxi drivers etc.
    I like your every video related to credit manager decisions.

    • @AnkushJain
      @AnkushJain  Рік тому +1

      Thank you Rishi. Income is assessed basis judgement on case to case upon actually visiting the client

  • @shyamjiki
    @shyamjiki 9 місяців тому +1

    Ankush Sir.... Really nice Vedio....what a great understanding of topic and I Hindi that's biggest opportunity... Understanding become easy with own language

  • @Bujhotohjane
    @Bujhotohjane 3 роки тому +1

    If you are having knowledge regarding this. Please share whenever you are available.😊

  • @viveksen9447
    @viveksen9447 2 роки тому +1

    Nice video, I gain good knowledge. Thanks sir

  • @spritiual_explorer
    @spritiual_explorer 5 годин тому

    Sir, how much maximum OD can be given to a company, and how is it assessed?

  • @GKHub1470
    @GKHub1470 2 роки тому +2

    Excellent video Sir 👌👌

  • @caaditkumar7450
    @caaditkumar7450 2 роки тому +1

    Dear sir
    Ur way of teaching and knowledge is superb sir..

  • @Pari575
    @Pari575 9 місяців тому +1

    V well explained thank you 🙏🏻

  • @rahulsrivastava5988
    @rahulsrivastava5988 3 роки тому +2

    Excellent Video sir....please share more such videos....related to Banking...Very useful for Bankers like us

  • @sudhirb.4516
    @sudhirb.4516 11 місяців тому +1

    Nice explanation sir

  • @sureshsolanki6252
    @sureshsolanki6252 Рік тому +1

    Good Explain👍

  • @pankajjain4275
    @pankajjain4275 6 місяців тому +1

    Succeeding month ke liye apply hoti hai to agle machine to extra sale ho sakti hai jiske liye extra funds ki jarurat bhi to ho sakti hai, usse wc loan ka purpose defeat ho jayega

    • @AnkushJain
      @AnkushJain  6 місяців тому

      Agar next month extra jrurat pdi to client interim stock statement de k and credit approval le k DP revise krwa skta hai

  • @prekshadeokar950
    @prekshadeokar950 Рік тому +1

    Cleared my doubts...thank you

  • @bakulalov
    @bakulalov 8 місяців тому +1

    Thanks sir so many blessings to you

  • @jitendramishra7591
    @jitendramishra7591 2 роки тому +1

    Thank u sir fr valuable information..

  • @homevillarealty
    @homevillarealty Рік тому +2

    Kindly make video on real estate funding for developers..thanks

  • @BharatKumar-bn5fw
    @BharatKumar-bn5fw 2 роки тому +2

    Sir, Is Intrest on CC part of Drawing power limit? Ex- DP limit for April 2022 is Rs 25 crore but company has utilized Rs (25 crore + 2 lakh).

    • @AnkushJain
      @AnkushJain  2 роки тому +1

      Yes, utilisation to be seen not sanction amount

  • @DipankarDas-wv4uc
    @DipankarDas-wv4uc 2 роки тому +1

    Excellent 👍❤️

  • @gurpreetSingh-pz7bo
    @gurpreetSingh-pz7bo 3 роки тому +1

    Thankyou so much sir, very well explained.. watched ur video full..
    Sir..plz make video on below mentioned topics plz,
    1- how to check account stateenet of limit and loan account.
    2 - how to chek churining of accounts

    • @AnkushJain
      @AnkushJain  3 роки тому

      Thanks Gurpreet.
      Will make video on topics suggested by you when I come to the topic of banking analysis

  • @shreemraj1248
    @shreemraj1248 2 роки тому +3

    what kind of security we will give in OD and DOD

    • @AnkushJain
      @AnkushJain  2 роки тому

      Pl watch lecture no. 9, it covers securities that can be offered to banks

  • @emnsandeep
    @emnsandeep 7 місяців тому +1

    Sir so client have to repay principle also in DOD? so what makes it different from a term loan.
    For example if dod amount is 60 lakhs for 60 months
    1st month client utilized 60 Lakhs next month he have to pay 1 Lakh principle?

    • @AnkushJain
      @AnkushJain  7 місяців тому

      Yeah. The difference is of interest. In DLOD, the interest is to be paid basis utilisation only. If client receive any lump sum money then he can deposit the same in DLOD account and pay interest on utilisation. While in term loans, the whole loan gets utilised and interest is paid on full

  • @calm247.
    @calm247. Рік тому +1

    Sir, for OD against property limits, is stock audit conducted for say limits above 5 cr?

    • @AnkushJain
      @AnkushJain  Рік тому

      Although not required but few bank still stipulate it

  • @divyanidhikapil4382
    @divyanidhikapil4382 Рік тому +2

    Dear Sir, Jo monthly stock statement customer bank ko deta hai uska bank monthly basis per audit krata hai in all cases ?

    • @AnkushJain
      @AnkushJain  Рік тому +1

      Audit is done on annual basis usually. Sometimes for large loan exposures, banks can also stipulate half yearly or quarterly stock audit. Stock audit is never done on monthly basis

    • @divyanidhikapil4382
      @divyanidhikapil4382 Рік тому

      Thank you sir fr quickly reply.
      You are doing great work.

    • @AnkushJain
      @AnkushJain  Рік тому

      Thank you

  • @abhijeetjain9282
    @abhijeetjain9282 2 роки тому +1

    Thank you soo much really it was very helpful

  • @saraswatirinku
    @saraswatirinku 7 місяців тому +1

    We should always recommend CC limit to client over OD/DOD facility.Is my understanding correct?

    • @AnkushJain
      @AnkushJain  7 місяців тому

      Not always... Sometimes business model warrant only OD structure

    • @saraswatirinku
      @saraswatirinku 7 місяців тому +1

      Can you give examples of business model that warrant only OD structure.

    • @AnkushJain
      @AnkushJain  7 місяців тому

      Service entities, restaurents, hospitals etc

  • @md-pq8pc
    @md-pq8pc 3 місяці тому +1

    Thank you so much sir

  • @krishnapandey3088
    @krishnapandey3088 10 місяців тому +1

    Hello sir,
    I have two questions in mind:-
    1.Is it mandatory to have current account with bank to avail cash credit, overdraft or dropline facility? Whether all these facilities are connected to current account??
    2.As u have mentioned that these aforesaid mentioned facilities are sanctioned against stock, debtors and creditors; then why banks are looking for more comfort by keeping collateral on property??

    • @AnkushJain
      @AnkushJain  10 місяців тому +1

      1. Current account not mandatory
      2. There are two type of securities
      - primary security - it is the asset which is financed through the loan. Like stock, debtors etc. it is taken as normal security
      - collateral security - it is a fall back plan when the borrower defaults in the loan.. practically since stock etc. are moveable assets, the borrower discard them before committing default so that bank doesn't get lien on them.. therefore immovable property is taken as collateral for additional and concrete comfory

    • @krishnapandey3088
      @krishnapandey3088 10 місяців тому

      ​@@AnkushJainGot it sir...Thank u so much.🙏🙏

    • @AnkushJain
      @AnkushJain  10 місяців тому

      👍

  • @ragstargupta7845
    @ragstargupta7845 10 місяців тому +1

    What if, client is in multiple banking, then can a client open multiple current account.

    • @AnkushJain
      @AnkushJain  10 місяців тому

      Yes, rbi current account circular need to be complied

  • @saibaldatta6615
    @saibaldatta6615 Рік тому +1

    Sir would you send the link for vacancies for the credit manager again. This was seen today but now it is not traceable. Specially vacancies for Bandhan Bank.

    • @AnkushJain
      @AnkushJain  Рік тому

      Hi please check in the community tab on my youtube page

  • @kundanroy8998
    @kundanroy8998 9 місяців тому +1

    Sir, is it not true that nowadays, bankers have started using CC and OD term interchangeably? Ideally as per this lecture, when an OD facility is given then there should be no DP calculation, but I have seen credit facilities given to large corporates under the name "Overdraft" and the bank still calculates the DP monthly on the OD facility. Can you please correct if this understanding is wrong?

    • @AnkushJain
      @AnkushJain  9 місяців тому

      I have not seen this being used interchangeably but if you are saying that you have seen then it might have been some exceptional case

  • @anuragpareek6121
    @anuragpareek6121 Рік тому +1

    Thanks for this😀

  • @avinvashisht5979
    @avinvashisht5979 2 роки тому +1

    hello Sir,
    happy gurpurab ...
    Sirbcould you please create a video on GECL and ECLGS facility in detail. Why it was started and its working.

    • @AnkushJain
      @AnkushJain  2 роки тому

      Happy Gurupurab. Yeah i was also thinking about this topic for a long time

    • @avinvashisht5979
      @avinvashisht5979 2 роки тому

      @@AnkushJain please sir kindly make it.

    • @AnkushJain
      @AnkushJain  2 роки тому

      👍

    • @avinvashisht5979
      @avinvashisht5979 Рік тому

      @@AnkushJain Sir have u created the videos for GECL AND ECLGS

  • @RajanKumar-gh2qx
    @RajanKumar-gh2qx Рік тому +1

    Sir. How to assess a DOD facility. I mean financial assessment such as that in CC like Turnover Method or MPBF method.

    • @AnkushJain
      @AnkushJain  Рік тому

      Yes if given for working capital. Further, dscr should also justify

    • @RajanKumar-gh2qx
      @RajanKumar-gh2qx Рік тому

      There is some formula for calculation such as:
      =Cash Profit* (Multiplier) - Obligations
      # Obligations for loans availed in past 12 months and to multiply the obligations with the remaining loan tenor or tenor of the loan proposed (tenor for whichever is lower).
      Can you please explain what is the logic behind this formula. How do banks normally calculate the eligibility of an eligible amount?

    • @AnkushJain
      @AnkushJain  Рік тому

      This is not a drawing power formula. It is related to DSCR

    • @rakeshprajapati5386
      @rakeshprajapati5386 10 місяців тому

      in the DOD facility you have to pay interest every month like OD/CC

    • @rakeshprajapati5386
      @rakeshprajapati5386 10 місяців тому

      ??

  • @govindkhandelwal4962
    @govindkhandelwal4962 2 роки тому +1

    Sir, DLOD revolving facility ha ya Non-revolving ??

  • @TheSuresh2022
    @TheSuresh2022 2 роки тому +1

    Sir, OD limit ka Drawing power se koi relation hota h kya??

  • @merasafar8644
    @merasafar8644 11 місяців тому +1

    Thank you

  • @rajpreetkaur6905
    @rajpreetkaur6905 4 місяці тому +1

    Sir what is the difference between ODAP and LAP.

    • @AnkushJain
      @AnkushJain  4 місяці тому +1

      OD is like a limit which I have explained in the video.. LAP is a term loan in which emi is paid monthly

  • @vimleshkumar-br2jn
    @vimleshkumar-br2jn 3 роки тому +1

    First of all thank u so much for the woderful session sir! question from my side: overall can we conclude that DLOD is given when the borrower is financially not performing well?
    and for Insurance- Insurance should be taken for full value of security or only equal to value of facility? If possible plz make a comprehensive video on that!

    • @AnkushJain
      @AnkushJain  3 роки тому +1

      Thank you vimlesh.
      It is not necessary that DLOD is given to stressed clients only. If client wants to repay his obligation then he can take this option. Sometimes client is overall good but books of accounts are mismanaged by his accountants then in that case also DLOD is preferred.
      Insurance is normally taken for facility amount or actual stock whichever is less. However client should ideally get his inventory fully insured in order to tackle future uncertainties.

    • @vimleshkumar-br2jn
      @vimleshkumar-br2jn 3 роки тому +1

      @@AnkushJain Thank u much sir. If possible then make a video for Insurance related points.

    • @AnkushJain
      @AnkushJain  3 роки тому +1

      @@vimleshkumar-br2jn ok noted.

  • @merasafar8644
    @merasafar8644 11 місяців тому +1

    Sir cc limit me CMA data banate hai

    • @AnkushJain
      @AnkushJain  11 місяців тому

      Yes har case mein bnta hai

  • @saraswatirinku
    @saraswatirinku 7 місяців тому +1

    Sir,
    In previous videos you mentioned that working capital finance is given only for 1 operating cycle so for eg. If the operating cycle is 3 months then bank finance only for 1 operating cycle and how rest 3 operating cycles are financed.Given that cc/of/dod is for 12 months and wc is given for 1 operating cycle i e. 3 months in my example then how rest 3 operating cycles get financed.Sir,please help me to understand working capital finance with respect to operating cycles in a year.

    • @AnkushJain
      @AnkushJain  7 місяців тому

      Pl watch lecture no. 1 and 2 for understanding this concept

    • @saraswatirinku
      @saraswatirinku 7 місяців тому +1

      CC and OD are for 12 months but working capital finance is given only for 1 operating cycle was mentioned earlier.Have gone through lec 1 and 2.
      Or cc/OD is assessed based on 1 operating cycle e.g 3 months but facility is given for all 4 operating cycles.

    • @AnkushJain
      @AnkushJain  7 місяців тому

      Yes 12 months is the validity the loan amount eligibility is for one cycle only

    • @saraswatirinku
      @saraswatirinku 7 місяців тому

      Sir,
      Pls correct me if am wrong.
      Bank gives money only for 1st operating cycle and cash generated from 1st operating cycle is used to invest in subsequent operating cycle s.

    • @AnkushJain
      @AnkushJain  7 місяців тому +1

      You are correct but pl understand that the cash generated from 1st cycle also include cash coming from limit funded by us.. so that also need to be taken forward to next cycle

  • @Finance.waalaa
    @Finance.waalaa 10 місяців тому +1

    Dear Sir,
    I'm Sanjay Datt Bajpei from Lucknow Currently working as Asst Credit Manager in NBFC. I want to do distance mba. Is it worth it ? Or certificate course in credit if yes then which certificate program will be helpful?

    • @AnkushJain
      @AnkushJain  10 місяців тому

      Present qualification?

  • @prashantjm
    @prashantjm Рік тому +1

    LC for creditors considered?

  • @Bujhotohjane
    @Bujhotohjane 3 роки тому

    Thanks Sir for replying so promplty for every querry. 1 more question, do you know are there any list of exceptional transactions that can't occur on Sundays and may indicate as red flags for banks.
    If you have any idea. Please comment at your convenient available time.

    • @AnkushJain
      @AnkushJain  3 роки тому +1

      Idea is to check whether client has submitted any fake bank statement to us or not. Online banking transactions happen 24/7 and therefore the transactions like DD making, cheque encashment which can happen in branch only need to cross verify. Sometimes it happen that there is holiday in one state but normal working day in another

    • @Bujhotohjane
      @Bujhotohjane 3 роки тому +1

      @@AnkushJain Understood. Thank you Sir. Highly appreciated for your prompt reply. 😊

    • @AnkushJain
      @AnkushJain  3 роки тому

      Thank you

    • @Bujhotohjane
      @Bujhotohjane 3 роки тому +1

      Wire Transfer, NEFT, Loan payments, Salary payments, Insurance, Bank charges, cheque disbursement say above 2 lakhs, transactions converted into EMI
      Can these transactions occur on Sundays?
      Or if you can add such more transactions that need bank confirmation and cant occur on Sundays.

    • @AnkushJain
      @AnkushJain  3 роки тому +1

      @@Bujhotohjane NEFT is allowed 24/7 as per batch. However other transactions should not happen on public holiday.

  • @amitthakur2675
    @amitthakur2675 4 місяці тому +1

    Sir ,MMG loan ka video nahi mil raha ha pls suggest

    • @AnkushJain
      @AnkushJain  4 місяці тому

      MMG loan?

    • @amitthakur2675
      @amitthakur2675 4 місяці тому

      @@AnkushJain Sir ,Mid Market loan ,like ticket size has 5 cr to 500 cr

    • @AnkushJain
      @AnkushJain  4 місяці тому

      Kon sa topic dekhna hai usmein

  • @simranbhakti437
    @simranbhakti437 24 дні тому +1

    Sir, i am a CPA (BLG). Can you pls suggest me how can i become a credit manager in bank as i am only graduate and didn't have done CA.

    • @AnkushJain
      @AnkushJain  24 дні тому

      ua-cam.com/video/DfhceeuPGkc/v-deo.html
      Watch this

    • @AnkushJain
      @AnkushJain  24 дні тому

      ua-cam.com/video/DfhceeuPGkc/v-deo.html
      Watch this

  • @avinvashisht5979
    @avinvashisht5979 Рік тому

    Sir please tell the condition which are mentioned in the Sanction Letter are put according to cm choice or is there any RBI guidelines in case of any facility I.e. OD, CC STL or WCDL.

    • @AnkushJain
      @AnkushJain  Рік тому

      Special conditions are put by credit managers while standard conditions are as per banks internal legal norms and rbi guidelines

    • @avinvashisht5979
      @avinvashisht5979 Рік тому

      @@AnkushJain oky sir

    • @AnkushJain
      @AnkushJain  Рік тому

      👍

  • @jatingandhi7892
    @jatingandhi7892 10 місяців тому +1

    Sir what are basel norms

    • @AnkushJain
      @AnkushJain  10 місяців тому

      Inke baare mein kbhi study nhi Kiya

  • @jitendramishra7591
    @jitendramishra7591 2 роки тому +1

    Sir, If a customer has taken DOD facilities, then how do we obligate in LE?

    • @AnkushJain
      @AnkushJain  2 роки тому

      LE?

    • @jitendramishra7591
      @jitendramishra7591 2 роки тому

      @@AnkushJain loan Elegbility..

    • @AnkushJain
      @AnkushJain  2 роки тому

      Monthly drops are your principle repayments. So you can use them accordingly

  • @sriram2sri
    @sriram2sri 3 роки тому

    Sir bank will give temporary overdrafts naa sir for shorter term on 30 to 90 days in that also their will two types naa sir intra and inter tod ; sir could you explain difference
    In practical world will banks provide short term overdraft for that shorter period

  • @ananyasrivastava04
    @ananyasrivastava04 3 місяці тому +1

    Sir when is third mpbf method used

    • @AnkushJain
      @AnkushJain  3 місяці тому

      Which one? Third method of tandon committee?

    • @ananyasrivastava04
      @ananyasrivastava04 3 місяці тому

      @@AnkushJain yes sir

    • @AnkushJain
      @AnkushJain  3 місяці тому

      @@ananyasrivastava04 we don't use it

  • @MDVaashir
    @MDVaashir 2 роки тому +1

    Watched

  • @yashnamdev7807
    @yashnamdev7807 Рік тому +1

    🎉🎉

  • @Bujhotohjane
    @Bujhotohjane 3 роки тому +1

    Also if a fraudster has write a cheque on 25-10-2021 of $4000 from 1
    One account(available balance $1000)to another bank account(AB:$500). Then how these tranx reflect in bank statement on 25-10-2021

    • @AnkushJain
      @AnkushJain  3 роки тому +1

      Sorry couldn't get, this cheque will get bounced due to balance not sufficient.

    • @Bujhotohjane
      @Bujhotohjane 3 роки тому +1

      In some banks cheque clears in 2-3 days, so fraudsters take advantage of this and do check kiting. Actaully, I read this theoretically. I wanted to know if this fraud scheme happens in India, if yes, then is there any way to detect these instances by analyzing bank statements?

    • @AnkushJain
      @AnkushJain  3 роки тому +1

      Can you explain kiting word? I may have heard about this transactions in some different way

    • @Bujhotohjane
      @Bujhotohjane 3 роки тому

      @@AnkushJain Check kiting is the deliberate issuance of a check for which there is not sufficient cash to pay the stated amount. The mechanics of this fraud scheme are as follows:
      Write a check for which there is not sufficient cash in the payer's account.
      Create a checking account at a different bank.
      Deposit the fraudulent check in the checking account that was just opened.
      Withdraw the funds from the new checking account.
      This fraud reduced outside India. But still happens in india as cheque clearnce takes time in some banks in India due to diff reasons.

    • @AnkushJain
      @AnkushJain  3 роки тому

      These transactions may happen. In order to give effect to these, the individual must have opened too many accounts across different banks. There could be some ways to identify these:
      1. The banks with whom client have defaulted by withdrawing the amounts, must have reported him as fraud in RBI data base. Therefore this should reflect in internal dedupe checks of the borrower.
      2. Check the balance sheet cash and bank details and check the bank names appearing in the list, cross check the statements and find cheque bouncing etc
      3. Do Google check in detail of the borrower and find if any news or case is running against the borrower.
      4. Such persons open account frequently. Check the account opening date of the borrower account, if it is latest then ask him where was he banking from last 2-3 years. Cross check the details and ask for statements of last 1 year evidencing most of his business transactions. Further cross check the parties from whom he is receiving payments from Google and relate them to his business model

  • @avinvashisht5979
    @avinvashisht5979 4 місяці тому

    Sir ,If od limit is 75 lakh as per last SL. And this year the team is having a discussion to give 35 in CTL And rest of the amount in Od ,so what will be the reasons for that and the benefit for the bank as well.
    Please explain few important points 🙏🙏

    • @AnkushJain
      @AnkushJain  4 місяці тому

      CTL?

    • @avinvashisht5979
      @avinvashisht5979 4 місяці тому

      @@AnkushJain yes sir CTL

    • @AnkushJain
      @AnkushJain  4 місяці тому

      I mean what is full form of CTL?

    • @avinvashisht5979
      @avinvashisht5979 4 місяці тому

      @AnkushJain no sir full form I know.
      I need to know the reason r
      That , on what basis we are changing the facility from OD of 75 lakh to CTL of 35 Lakh and rest 40 Lakh will be kept in OD Facility.
      I hope I am clear with my query?

    • @AnkushJain
      @AnkushJain  4 місяці тому

      Yeah I can explain but just tell me whether CTL is a term loan or what?

  • @amanbhardwaj1000
    @amanbhardwaj1000 2 роки тому +1

    Sir, upto which year projected bal. Sheet is required while renewing Cash credit...?
    Let's say the borrower comes now and says .." sir, please renew my CC limit"
    And I say to him "please, bring These docs
    1) audited bal. Sheet of 31/03/2023
    2) estimate bal. Sheet of 31/03/2023
    3) projected bal. Sheet of 31/03/2024
    Sir, Is what I asked for from the borrower right?
    Please let me know

    • @AnkushJain
      @AnkushJain  2 роки тому +1

      In private sector, we don't ask from client for future balance sheets. We usually ask them about sales, profitability projections along with present working capital cycle. Thereafter projections are framed accordingly by us

    • @amanbhardwaj1000
      @amanbhardwaj1000 2 роки тому

      @@AnkushJain ok sir.. thanks

    • @AnkushJain
      @AnkushJain  2 роки тому

      👍

  • @merasafar8644
    @merasafar8644 11 місяців тому +3

    199 pay per online training milti hai

    • @AnkushJain
      @AnkushJain  11 місяців тому +3

      Separate individual training nahi hai.. kuch high end videos daali hain, 50+ daal Chuka hu already.. to unka access milega

    • @thekrish2186
      @thekrish2186 9 місяців тому

      Ok

    • @AnkushJain
      @AnkushJain  9 місяців тому

      👍

  • @Bujhotohjane
    @Bujhotohjane 3 роки тому +1

    Hello Sir, I wanted to know signs of Check Kiting. Like how to detect signs of check kiting in a bank statement?

  • @Ajay_Kumar14
    @Ajay_Kumar14 2 роки тому +1

    Suppose a client has availed cash credit facility and before expiry of the limits some amount is outstanding. Bank has renewed the cash credit facility of the borrower. If bank keep renewing the CC limit annually then when will the outstanding amount be repaid. Isn’t the borrower benefiting from it that it just need to pay the interest on utilised amount without paying back principal or outstanding amount. Before renewing facilities banks don’t ask to pay the outstanding amount.

    • @AnkushJain
      @AnkushJain  2 роки тому

      This is the feature of this loan. It is running limit. Never comes down and basically client't debt never gets repaid. Borrower need to be smart and should ideally keep on reducing the limit in timely intervals itself

  • @Rajkumar-ik9ux
    @Rajkumar-ik9ux Рік тому +1

    no clear explanation

    • @AnkushJain
      @AnkushJain  Рік тому

      Hi Rajkumar, can you share your queries, i will try to address them

  • @ca.rahulkumarrathod9587
    @ca.rahulkumarrathod9587 2 роки тому +1

    Well explained 👍

  • @yuvrajpatil1111
    @yuvrajpatil1111 9 місяців тому +1

    Thank you sir 💐