Loan Against Card Receivables (LACR) is a facility especially for retail businesses that receive payments through customers via Debit / Credit Cards, Such as Restaurants, Hotels, Garment Merchants, Jewellers, Petrol Pumps, Automobile workshops & Spare Dealers, Dealers of Electronics & Consumer Durables, Diagnostic & Medical Services.

The Facility is offered as an unsecured overdraft (OD) or Dropline Overdraft (DLOD) to fulfill immediate financial needs for:

  1. Working Capital
  2. Short-term Cash
  3. Business Expansion
  4. Acquiring Another Business
  5. Purchasing New Inventory
  6. Salary Commitment
  7. Vendor Payments
  8. Buying New Equipment

Advantages of Loan Against Card Receivables (LACR)

  1. Unsecured Loan amount raning from Rs. 5 Lakhs to Rs. 10 Lakhs.
  2. Loan amount can be extended upto Rs. 300 Lakh if backed by security.
  3. Attractive interest rates
  4. Interest applicable only on amount utilised.
  5. Net banking facility available.
  6. Free cash deposit facility.

Eligibility for Loan Against Card Receivables (LACR)

Any of the following Indian business entities

  1. Partnership
  2. Proprietorship
  3. Private Ltd.
  4. Closely Held Public Ltd.

Documentation for Loan Against Card Receivables (LACR)

  1. Busines Vintage: Minimum 3 years in the same line of business and operating since 3 years or more in the same city.
  2. Ownership: Proof of ownership of business/residential premises.
  3. Financials: Last 3 years audited financial statements
  4. Turnover: Minimum Turnover Rs. 1 Crore in the last financial year.
  5. Personal Guarantee: All Partners / Main Directors and Shareholders to be required to stand as co-applicants / Guarantors to the loan.
  6. Business Undertaking: Break-up of last 12 months sales / 12-month card sales done, machine wise or store wise on the letterhead of the company, self-attested by management.