CC / OD Limit
A revolving working-capital limit for your business — draw what you need, repay, and draw again, paying interest only on what you use.
A Cash Credit (CC) or Overdraft (OD) limit is a standing line of working capital for your business — sanctioned once, then available to draw down and repay repeatedly, much like a large flexible credit line. It’s built for businesses whose cash needs rise and fall through the year: paying suppliers before customer payments arrive, stocking up for a season, or covering a temporary gap.
The real advantage is cost: you pay interest only on what you actually use, for as long as you use it — not on the entire sanctioned amount sitting idle. Limits and terms vary meaningfully by lender and by the collateral you can offer, which is exactly where matching you to the right one among our 90+ partners saves both time and money.
Who it suits
- Businesses with fluctuating short-term cash needs
- Traders and manufacturers managing seasonal inventory cycles
- Anyone who wants standby funds without a fixed EMI commitment
Eligibility
- An operating business with a reasonable turnover history
- Collateral is often required for larger limits (property, fixed deposit, or inventory/receivables as security)
- Regular banking activity and satisfactory credit history
- Existing borrowings are reviewed alongside the new limit requested
Documents you'll need
- PAN and business registration proof
- Bank statements, typically 12 months
- ITR and financial statements for the last 2 years
- Collateral documents, where applicable
A quick sense of the EMI
For example, ₹15,00,000 over 5 years at an indicative 11% works out to about:
₹32,614/month
Indicative only — your actual EMI depends on the amount, tenure and rate you're offered.
Try the full calculatorCommon questions about cc / od limit
What is the difference between Cash Credit and Overdraft?
Cash Credit (CC) is typically extended against stock or receivables and is common for trading/manufacturing businesses. Overdraft (OD) is usually extended against a fixed deposit, property, or your banking relationship. Both work the same way day to day — you draw and repay within a limit.
Do I pay interest on the full limit even if I don't use it all?
No — that's the core advantage. Interest is charged only on the amount you've actually drawn and for the days you've used it, not on the full sanctioned limit.
How often is the limit renewed?
CC/OD limits are typically reviewed and renewed annually by the lender, based on your business's performance during the year.
Is collateral always required?
For larger limits, usually yes — property, fixed deposits, or stock/receivables are common. Smaller limits may be available against your banking relationship alone, depending on the lender.
Ready to talk about your cc / od limit?
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