Opportunities
- ₹5.00 crore of receivables sit outside the eligible pool. The open scenario moves the illustration from ₹36.30 crore to ₹38.10 crore. Reclassify only with evidence.
Cash credit drawing power · updated 28 Oct 2026
Drawing power calculator for cash credit — see the formula at work
JR Loan Advisors’ free tool gives an illustrative drawing-power figure for a cash-credit limit after stock, receivables and margins (demo near ₹36 crore — change any figure). Example margins on this page are illustration only; your sanction letter decides. Working-capital monitoring sits under bank rules overseen by the Reserve Bank of India (RBI home, checked on 28 Oct 2026) — this is not an official RBI calculator.
What is the drawing power formula this page uses?
Illustrative only: eligible stock after stock margin, plus eligible receivables after book-debt margin, minus creditors and other letter deductions, then capped at the sanctioned CC limit. Sample formula — not your bank’s. RBI oversees working-capital monitoring; each bank writes its own margins (rbi.org.in, checked 28 Oct 2026).
Need the bank paper next?
This calculator is free. When the bank wants the monthly stock statement or Forms I–VI CMA pack, use the paid tools :
- Stock statement pack — preview free · Year Pack ₹2,999 (recommended) or month-file ₹199 · sample PDF
- CMA data maker — Year 1 free · full Forms I–VI pack ₹999 · sample PDF
- CC/OD enhancement — bigger limit story · ₹1,499 / scenario
₹ Crore workspace No login required Illustrative policy, not bank-approved Sample formula
Illustration, not the bank stock papers. Lender rules for ageing, creditor deduction, stock valuation and margins are not recorded. The figure is an illustration.
Illustrative drawing power
₹36.30 Cr
Your borrowing inputs
₹
Overall cap stated in the sanction
₹
You enter the eligible figure. This page does not identify obsolete stock, spares, scrap, or goods in transit.
₹
Before the ageing exclusion
₹
Bills discounted are not removed here. Put them in ineligible receivables only if the sanction excludes them.
₹
Taken off margined stock only. They do not reduce book-debt drawing power. Not a bank stock papers. The bank’s special unpaid-stock order for unpaid goods is not modelled.
₹
Outstanding. A credit balance may be entered as negative.
Assumed margins — editable
%
%
Working papers and sanction rules
Leave the sheets empty to use the six figures above. Add categories or a debtor ledger when you want the engine to add them up. A blank amount is read as zero. The sanctioned limit is never read as zero if you clear it.
Stock categories
| Category | Gross | Ineligible | Margin % |
|---|
Receivable ledger
| Name | Amount | Age | Related | Excluded |
|---|
₹
Not deducted unless you tick that box. The tick is your assumption, not a bank rule, and an advance is not a trade creditor.
₹
Sanction rules recorded on this page
Record what the sanction says. JR does not verify it. A paid-stock order is illustrated beside the main figure. The bank’s special unpaid-stock order for unpaid goods is not modelled. Neither figure is the bank stock papers.
Bank-specific methods vary. This sandbox uses a sample formula. Stock is margined first. Creditors come off that stock result only and do not reduce book-debt drawing power. Margined book debts are added, then elected advances and entered reserves. The result is floored at zero and capped at the sanction. A paid-stock illustration (creditors before the stock margin) sits beside the main figure when the amounts differ. On the sample that contrast is ₹39.30 crore beside ₹36.30 crore. The bank’s special unpaid-stock order for unpaid goods is not modelled. This is not a bank stock papers and not a universal bank formula.
The anatomy of your limit
Sanctioned limit, drawing power and utilisation, then the bridge
Sanctioned
₹55.00 Cr
Drawing power
₹36.30 Cr
Utilised
₹29.00 Cr
Supporting assets Deductions Limit
| Component | Amount |
|---|---|
| Stock contribution | ₹31.50 Cr |
| Creditors applied to margined stock | ₹12.00 Cr |
| Book debts not reduced by creditors | ₹16.80 Cr |
| Illustrative drawing power | ₹36.30 Cr |
| Paid-stock illustration, not the bank stock papers | ₹39.30 Cr |
What is limiting the result?
Stock contributes ₹31.50 crore, eligible receivables ₹16.80 crore, and creditors of ₹12.00 crore come off margined stock only. The paid-stock illustration beside this figure is ₹39.30 crore. It is not the bank stock papers.
What if the eligible pool changes?
A hypothetical mix. The receivable book total stays the same. Stock brought back was already excluded from the eligible inventory. This is not an instruction to reclassify without evidence.
₹3.00 Cr
₹
₹0.00 Cr
Base drawing power
₹36.30 Cr
Hypothetical scenario
₹38.10 Cr
Change from base: ₹1.80 Cr. This assumes ₹3.00 Cr of the existing ineligible receivables becomes eligible. Other sanction restrictions may apply.
Illustrative drawing power
₹36.30Cr
For October 2026, this illustration supports ₹36.30 crore of the ₹55.00 crore cash-credit sanction. This is a modelled output, not a bank commitment.
Paid-stock illustration ₹39.30 Cr. Creditors before margin. Not the bank stock papers.
Creditors are within margined stock, so none are left over. They do not reduce book-debt drawing power.
- Bills discounted are not removed by this page.
- Consortium and multiple-banking allocation are out of scope.
- Foreign-currency stock and book debts are out of scope.
- This is not a bank limit-sizing method (Nayak, Maximum Permissible Bank Finance / MPBF, Tandon, or Chore).
- The bank’s special unpaid-stock order for unpaid goods is not modelled. If a bank treats creditors as already inside the assessment level, this page does not compute that order.
Where the facility is constrained
Creditors are taken off margined stock only. Book debts stay at ₹16.80 crore. At the entered utilisation, undrawn on this illustration is ₹7.30 crore.
Calculation, without the black box
Inspect the logic Illustrative calculation (sample formula):
Stock is margined first. Creditors come off that stock result only and do not reduce book-debt drawing power. Margined book debts are added, then elected advances and entered reserves. Floor at zero. Cap at the sanctioned limit. A paid-stock illustration (creditors before the stock margin) is shown beside the main figure when the amounts differ. On the sample that is ₹39.30 crore beside ₹36.30 crore. The bank’s special unpaid-stock order for unpaid goods is not modelled. This is not the bank stock papers.
Undrawn on this illustration is the capped figure less outstanding, when outstanding is lower. When outstanding is higher, the card shows that rupee shortfall. A credit balance in the cash-credit account is not extra drawing power.
Take these questions to your bank:
- Which receivable age buckets does this sanction treat as ineligible?
- Are trade creditors deducted in full, or only creditors against unpaid stock?
- What valuation basis and margin apply to each stock category?
- Are related-party and associate book debts eligible?
- Does insurance, inspection or a delayed stock statement restrict drawing power?
- Is the drawable amount the lower of drawing power and the sanctioned limit, less the outstanding?
For explanation only — your bank’s rules can differ.
JR Loan Advisors is an adviser, not a bank or NBFC. This page does not promise a sanction, a limit, or a rate. Read this list before you act on the figure.
This is not a bank limit-sizing method (Nayak, turnover, Tandon, Chore, or Maximum Permissible Bank Finance / MPBF). Those methods size the sanctioned limit. They are not this month's drawing power.
- The main figure is not a bank stock papers. Creditors reduce margined stock only and do not reduce book-debt drawing power. A paid-stock illustration (creditors before margin) is shown beside it when the amounts differ. The bank’s special unpaid-stock order for unpaid goods is not modelled.
- Ageing stops at the 120-day bucket. Bill-wise due dates and debtor-wise limits are not modelled. Bills discounted are not removed by this page.
- Related-party, associate, export, and bill-discounted receivables are flags you record, not the lender's rulebook.
- Category margins apply only to rows you enter. Valuation is recorded, not recomputed. Obsolete stock, spares, scrap, and goods in transit have no automatic rule.
- Creditor debit balances, supplier advances, and deposits are not a second formula.
- Imported stock, letter-of-credit stock, and stock hypothecated elsewhere are not modelled.
- Insurance, inspection, and a late stock statement are not a bank formula. An unmet insurance condition withholds a figure only when you say the condition is unmet.
- Consortium and multiple-banking allocation are out of scope.
- Foreign-currency stock and book debts are out of scope. This tool is INR only.
- Overdue interest, devolved letters of credit, and buyer's credit are not modelled.
Warnings from this working:
Exports stay on your device. This tool does not send the figures to JR Loan Advisors.
What this means
Opportunities, constraints, risks and the next useful action. Not a credit decision.
Constraints
- Creditors are taken off margined stock only. Book debts stay at ₹16.80 crore. Stock after the margin is ₹31.50 crore.
Risks
- Using this illustration in a stock statement, or with a bank, as if it were the bank stock papers.
Next actions
- Read the sanction clauses for margin, ageing, creditors, insurance and the stock-statement date.
- Save this month in the browser and compare it next month.
Month to month
Save a statement month in this browser and compare it with the working on screen. JR does not receive the snapshot. Deleting it removes only this browser’s copy.
No earlier month is saved yet. The return use is the next stock statement.
Drawing power formula, stock statement and CMA
Plain answers. The calculator above stays the source of the number.
What is the drawing power formula used here?
Illustrative order: margin eligible stock → take creditors off that stock result (as modelled) → add margined eligible receivables → apply elected advances/reserves → floor at zero → cap at the sanctioned CC limit. This is a sample formula, not your bank’s. Your sanction letter can order unpaid stock, ageing and reserves differently.
Stock statement format for CC limit — how does it connect?
Banks expect a stock statement format for the CC limit each month (inventory, book debts, creditors). This page does not replace SBI or any bank’s Excel form. It shows how those inputs change an illustrative drawing power figure so you can ask better questions before renewal.
Drawing power calculation in Excel vs this studio
Many controllers keep a drawing power calculation in Excel beside the stock statement. You can still do that. This Drawing Power Studio runs in the browser with no login, CSV/PDF export on your device, and month-to-month compare stored only locally.
Need CMA data as well as drawing power?
Annual renewals usually need both a clean stock-statement trail and CMA data (operating statement + Maximum Permissible Bank Finance (MPBF)). For bank-ready monthly stock papers (Parts A–E + DP bridge), use the Stock Statement Pack (preview free · Year Pack ₹2,999 recommended, or ₹199 one month). For Forms I–VI use the CMA data maker (Year 1 free · full pack ₹999).
Before you rely on the figure
Is this my bank’s drawing power?
No. It is an illustrative model. Your sanction letter decides eligible stock, book debts, margins, creditors and other conditions. JR Loan Advisors does not sanction loans.
Do I need an account?
No. The tool runs in your browser. Saving a month stores it only in this browser. Figures are not sent to JR Loan Advisors.
Does a higher result mean the bank will raise the limit?
No. The model does not estimate approval, pricing or a new sanction. A result above the sanctioned limit does not increase the limit.
When are the sanction rules recorded on this page?
After you record ageing, creditors, valuation, margins, related parties and insurance, and the working has no inconsistent figures. JR still has not verified the letter. Recording the rules does not make this the bank stock papers.
What does this formula leave out?
This is not a bank limit-sizing method (Nayak, turnover, Tandon, Chore, or Maximum Permissible Bank Finance / MPBF). Those methods size the sanctioned limit. They are not this month's drawing power.
- The main figure is not a bank stock papers. Creditors reduce margined stock only and do not reduce book-debt drawing power. A paid-stock illustration (creditors before margin) is shown beside it when the amounts differ. The bank’s special unpaid-stock order for unpaid goods is not modelled.
- Ageing stops at the 120-day bucket. Bill-wise due dates and debtor-wise limits are not modelled. Bills discounted are not removed by this page.
- Related-party, associate, export, and bill-discounted receivables are flags you record, not the lender's rulebook.
- Category margins apply only to rows you enter. Valuation is recorded, not recomputed. Obsolete stock, spares, scrap, and goods in transit have no automatic rule.
- Creditor debit balances, supplier advances, and deposits are not a second formula.
- Imported stock, letter-of-credit stock, and stock hypothecated elsewhere are not modelled.
- Insurance, inspection, and a late stock statement are not a bank formula. An unmet insurance condition withholds a figure only when you say the condition is unmet.
- Consortium and multiple-banking allocation are out of scope.
- Foreign-currency stock and book debts are out of scope. This tool is INR only.
- Overdue interest, devolved letters of credit, and buyer's credit are not modelled.
Sample formula for illustration. Drafts stay in this browser only.
Is an advisory conversation a fit?
The calculator stays available either way. Direct financing advisory is reserved for a present requirement strictly above ₹5 crore.
Choose one. Nothing is selected in advance, and no message is sent.
Do not attach stock statements, these figures, PAN or bank credentials to the first message.
Reviewed by CA Jitendraa Rathi, Chartered Accountant (CA membership number 217936),