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What are fund based limits?

Updated: 9/11/2023
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13y ago

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Fund Based Limit is a limit in which the Co is getting money actually(Cash). whereas in non-fund base limit bank make payment on behalf of company.

Fund Base Limit:

Cash Credit

Term Loan

Non-Fund Base Limit:

Bank Gurantee

Packing Credit

Letter of Credit

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Q: What are fund based limits?
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