Full Form of ACF – Account Credit Facility

What is the Full Form of ACF

Full Form of ACF

The full form of ACF is “Account Credit Facility”. ACF is a banking terminology that is often used when you apply for a loan amount. But many people are unaware of the full form of ACF. The full form of ACF is Account Credit Facility and it is the type of loan given to business companies and corporate firms. It helps businesses to take a loan from the credit facility allowed by the banks instead of applying for a new loan scheme. The credit facilities are also given to retail customers who have their accounts with the individual bank. It includes car loans, home loans, personal loans, credit cards, and many other facilities. Therefore, the account credit facility may differ from customer to customer and bank to bank.

How does the bank decide on ACF

In the previous section, we covered the full form of ACF. Here we are going to see the various aspects by which the bank decides on the ACF. The account credit facility differentiates from account to account. So, there are some factors based on which the amount of ACF is decided. Below we have listed some parameters by which the banks decide on the ACF. Check RBI guidelines for ACF here.

Credit Score

Credit score plays an important role in calculating the ACF. The amount of credit facility depends on the credit score of the individuals who are applying for a loan. If you have a high credit score then you will get a high credit amount eligibility. The credit scores are calculated by the credit bureau agencies and are based on which the bank decides the amount of credit to be given.


The income of an individual also plays an important role in the ACF loan amount. If you are having a stable and good running income then also you get a good ACF from the bank. The bank also gives you offers and low-interest rates on the credit facility. So, the income of the individual is the responsible factor for the amount of ACF.

Existing Loan

The existing loan decides the amount of ACF that which bank can credit to you. If you are having any existing loans then the ACF may be less than your expectation. It happens because you have already availed some portion of your credit facility. For more credit facilities, the bank will not lend a high amount and therefore you will get a low credit facility on your bank account.

Bank Statement

The bank statement of the individual is required to know about the running cash flow in your account. The bank also goes through your bank statement to recommend the amount of ACF. If you are having revolving transactions every month then it is a nice sign to avail of the account credit facility from the bank.

Repayment History

The repayment history decides how good you are at the repayment of the loan amount in the past times. Before you could get the account credit facility, the bank checks your repayment history to see whether you will be able to pay back the credit facility or you can’t.Β  So, to decide on ACF, banks will go through the repayment history of your bank account. Know about the full form of ACF here.

Types of ACF

In this article, we have seen the full form of ACF along with the major deciding factors which are the deciders in the ACF amount. There are five types of ACF that a bank offers to its customers:-
  1. Retail Credit Facilities
  2. Revolving Loan Facilities
  3. Letters of Credit
  4. Retail Credit Accounts
  5. Committed Facilities

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