Cash Credit (CC):
A short-term loan provided to meet daily business needs. It allows withdrawal of funds up to a fixed limit and interest is charged only on the amount used. It helps maintain regular working capital flow.

CGTMSE Loan:
A government-backed scheme that offers loans to small and micro businesses without any security or property. It helps startups and small enterprises get easy access to finance for growth.

Purchase/Sales Invoice Discounting:
A financing option where a business receives money from the bank against its pending customer invoices. It helps maintain smooth cash flow and ensures working capital availability.

Overdraft (OD):
A flexible credit facility linked to a current account that allows withdrawal beyond the available balance, up to a fixed limit. Interest is payable only on the used amount.

Packing Credit:
A pre-shipment loan for exporters to cover expenses like raw material purchase, processing, and packing before shipment.

Letter of Credit (LC):
A financial document issued by a bank guaranteeing payment from the buyer to the seller, provided all terms and conditions are met. Commonly used in import and export trade.

Bank Guarantee (BG):
A financial assurance by the bank that it will make payment to a third party if the customer fails to fulfill contractual obligations. Commonly required in tenders and contracts.

Term Loan:
A fixed-period loan, usually ranging from 1 to 10 years, provided for business expansion, asset purchase, or setting up a new unit. Repayment is done through monthly installments.

Project Loan:
A long-term loan provided for large business projects, sanctioned based on the project’s cost, plan, and expected future returns.

Machinery Loan:
A loan given for purchasing new or used machinery and equipment, helping businesses upgrade or expand production capacity.

Unsecured Business Loan:
A loan provided without any security or collateral. It is approved based on the business’s turnover, financial performance, and credit score.