Short Term Finance

Corporate Banking:
Modhumoti Bank Limited provides the credit facilities to finance current assets and loans to finance fixed assets in the form of Working Capital Finance, Capital Machinery Finance, and Real Estate Finance, Work order Financing/Construction Business, Import and Trade Finance.

Short Term Finance:
Short-term loans are used to finance Inventory, Account Receivables or other Current Assets i.e. to finance the working capital requirement. Forms of short-term loan are given below:

1. Cash Credit [Hypothecation]
Cash Credit account is like a current account with a limit up to which one can withdraw from the bank. It is revolving in nature. Cash Credit is usually sanctioned for a period of one year where a regular limit is sanctioned to purchase and maintain Stock for trading.

2. Overdraft [General]
Under this, a regular limit, revolving in nature, is sanctioned to meet day to day expenses of business. This form of credit is given to the business where maintenance of stock on a regular basis is not possible. The account is adjusted by the sale proceeds or from own source of the customer.

3. Short Term Loan
This type of loan is sanctioned for a specific purpose to meet urgent business requirement having validity within one year and repayable by either by installment or in lump sum within validity.

4. Secured Overdraft
It’s an overdraft facility allowed against lien of FDR or other financial instruments in the name of Secured Overdraft (SOD). SOD facility to the borrower may be allowed generally in the following ways:
Overdraft-against FDR in the name of borrower
Overdraft- against FDR in the name of 3rd party
Overdraft- against wage Earners Dev. Bond
Overdraft- against DPS