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What is Working Capital / CC / OD Limit?

Working Capital facilities such as Cash Credit (CC) and Overdraft (OD) are credit limits provided to businesses to manage day-to-day operational expenses. These limits help maintain smooth cash flow by financing inventory, receivables, and short-term business needs.

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Nature of the Facility

• Short-term revolving credit
• Can be secured or unsecured
• Interest charged only on utilized amount
• Limits can be renewed annually
• Designed for MSMEs, traders, manufacturers, and service providers

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Types of Working Capital Facilities

• Cash Credit (CC): Linked to stock and receivables
• Overdraft (OD): Linked to current account / fixed deposits / property
• Dropline OD / Temporary OD: For seasonal or peak requirements

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Usage

• Purchase of raw material or inventory
• Payment to suppliers and vendors
• Managing receivables cycle
• Salary, rent, and operational expenses
• Bridging cash flow gaps

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How to Avail

1. Business profile and operational assessment
2. Analysis of financial statements and turnover
3. Stock & receivables assessment (for CC)
4. Credit evaluation and limit calculation
5. Sanction of CC / OD limit
6. Documentation and account activation

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Key Features

• Revolving credit facility
• Interest only on amount utilized
• Improves liquidity and cash flow
• Flexible withdrawals and repayments
• Enhances business continuity and growth

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Documents Required (Indicative)

Business & Personal Documents

• PAN Card (individual / firm / company)
• Aadhaar / Passport / Voter ID of promoters
• Business registration documents
• Passport-size photographs

Financial Documents

• ITR (2–3 years)
• Balance Sheet & Profit & Loss statements
• GST returns (6–12 months)
• Bank statements (12 months)

Working Capital Specific Documents

• Stock statement (monthly / quarterly)
• Debtors & creditors aging report
• Projected financials (if required)
• Sales purchase register

Collateral Documents (If Secured)

• Property documents
• Fixed Deposit details
• Other security papers