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:
- Working Capital
- Short-term Cash
- Business Expansion
- Acquiring Another Business
- Purchasing New Inventory
- Salary Commitment
- Vendor Payments
- Buying New Equipment
Advantages of Loan Against Card Receivables (LACR)
- Unsecured Loan amount raning from Rs. 5 Lakhs to Rs. 10 Lakhs.
- Loan amount can be extended upto Rs. 300 Lakh if backed by security.
- Attractive interest rates
- Interest applicable only on amount utilised.
- Net banking facility available.
- Free cash deposit facility.
Eligibility for Loan Against Card Receivables (LACR)
Any of the following Indian business entities
- Private Ltd.
- Closely Held Public Ltd.
Documentation for Loan Against Card Receivables (LACR)
- Busines Vintage: Minimum 3 years in the same line of business and operating since 3 years or more in the same city.
- Ownership: Proof of ownership of business/residential premises.
- Financials: Last 3 years audited financial statements
- Turnover: Minimum Turnover Rs. 1 Crore in the last financial year.
- Personal Guarantee: All Partners / Main Directors and Shareholders to be required to stand as co-applicants / Guarantors to the loan.
- 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.