Cash Credit

Cash Credit is a type of loan extended by Takasbank to provide brokerage houses with efficiency and convenience in capital market transactions. A cash credit enables early access to clearing receivables with early settlement of clearing debts and also provides depth to the markets.

Brokerage houses wishing to use Cash Credits are required to sign the "Cash Credit Letter of Undertaking" a statement addressed to Takasbank containing the amount of the loan. Brokerage houses cannot draw loans in excess of the total amount of the Commitments they signed.