OD (Overdraft) and CC (Cash Credit) loans are short-term working capital solutions provided by banks and financial institutions to help businesses manage their day-to-day operational expenses. These facilities allow businesses to withdraw funds beyond their available balance, offering flexibility in cash flow management.

What is an Overdraft (OD)?

An Overdraft facility allows an account holder to withdraw more money than what is available in their current account, up to a pre-approved limit. Interest is charged only on the amount utilized, not on the full limit, making it cost-effective for temporary cash needs.

What is Cash Credit (CC)?

Cash Credit is a type of working capital loan given to businesses to finance everyday operational expenses. It is secured by inventory, receivables, or other current assets and is generally reviewed annually by the bank. Like OD, interest is charged only on the utilized amount.

Key Features of OD & CC Loans:

• Credit Limit: Pre-approved, based on business performance and collateral value

• Flexible Usage: Withdraw funds as needed within the sanctioned limit

• Interest Charges: Pay interest only on the amount you actually use

• Renewable Facility: Limits can be renewed annually based on usage and repayment history

• Security: Usually secured against stocks, receivables, or fixed assets

• Usage: Ideal for managing cash flow gaps, supplier payments, or emergency expenses

Benefits of OD & CC Loans:

• Improves liquidity and cash flow

• Interest savings due to usage-based charging

• Helps maintain business continuity during lean periods

• Easier repayment structure — flexible and revolving

• Strengthens creditworthiness when managed responsibly

Eligibility Criteria:

• Registered business with operational vintage

• Good banking and credit history

• Satisfactory turnover and financial stability

• Collateral or current assets (for CC loans)

Documents Required:

• KYC of business and promoters

• Bank statements (6–12 months)

• Income tax returns and financials

• Business proof and incorporation documents

• Details of inventory and receivables (for CC)

Why Choose Us?

• Quick assessment of eligibility and limit

• Assistance with documentation and bank coordination

• Best-fit solutions for your working capital needs

• Support for OD/CC renewal and enhancements

• Transparent and personalized guidance

Maintain financial flexibility and power your business operations.