State that in what forms the working capital finance may be granted by the Banks?

Working capital finance (requirement of certain minimum level of current assets) is granted by banks in the form of Cash Credit (CC), Overdraft (OD), Bills - purchased in case of demand bills/discounted in case of usance bills, pre shipment and post shipment and Working Capital Term Loan. Cash Credit is given against hypothecation/pledge of stock/movable assets for various purposes. While granting cash credit limit, the bank requires the borrower to contribute the margin say 25% of the value of assets (pledged/hypothecated). Bank allows the customer to draw down subject to margin which is called the drawing power. If the limit is ₹100 lakh and with the margin of 25% the drawing power subject to the security (paid stock/value of assets pledged/Hypothecated) would be ₹75 lakh or less. In case of OD accounts also the drawn down of funds would be subject to margin and drawing power of the borrower. Invariably CC is given against movable goods/assets, and the OD is given against financial securities like bills of exchange (financing of debtors), fixed deposit receipts, shares and tradable market instruments and book debts.