Cash credit / overdraft
Working capital limits for your business
A cash credit or overdraft limit against your stock and receivables keeps your business running smoothly — and you pay interest only on what you use.
- Limit based on stock, debtors and creditors
- Interest only on the amount used
- Renewed and reviewed every year
- Help with the bank’s paperwork
About cash credit and overdraft
Cash credit (CC) or overdraft (OD) lets your business withdraw money from its current account up to an approved limit, even without a credit balance.
Interest is charged only on the amount you actually use, not on the whole limit.
The limit is based on your drawing power, worked out from your stock, debtors and creditors, and is usually secured by those assets and additional collateral.
Documents usually needed
- KYC of the business and its promoters
- ITRs and audited financials for the last 2 to 3 years
- Stock and debtors statements
- Bank statements for the last 12 months
- Papers for any property offered as collateral
Download the full cash credit documents checklist (PDF)
Your consultant confirms the exact list for the lender you choose.
Who is eligible
Businesses that need working capital, applying in the name of the business. Lenders mainly look at:
Working-capital cycle
How long money is tied up in stock and receivables.
Stock, debtors and creditors
These decide your drawing power and the limit.
Credit history
A good credit record for the business and its promoters.
Collateral offered
Property, fixed deposits or other assets offered as additional security help you secure a larger limit.
What you get
Pay for what you use
Interest is charged on the amount drawn, not on the sanctioned limit.
Flexible
Withdraw and repay as often as you need within the limit.
Grows with you
The limit is reviewed every year and can be raised as your business grows.
Right structure
We help you choose between CC, OD and term loans for your cash-flow pattern.
Work out your EMI
Change the amount, rate and tenure to see how the monthly instalment and total interest move. A longer tenure lowers the EMI but raises the total interest you pay.
Your consultant will show you the actual figures from each lender before you decide.
EMI calculator
- Monthly EMI
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- Total interest
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- Total payable
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Example figures only. Your actual rate, fees and EMI depend on the lender and your profile.
Ready to compare offers?
Tell us what you need and a consultant will call you back — usually within one working day. The first consultation is free.