What is CC / OD-DOD?
Cash Credit (CC) is a short-term credit facility provided by banks to businesses to meet their working capital needs. The borrower gets a sanctioned credit limit and can withdraw funds as required, paying interest only on the amount utilized.
Overdraft (OD) allows you to withdraw more than your account balance up to a sanctioned limit. DOD (Demand Overdraft / Drawing on Demand) works similarly but is typically sanctioned on a demand basis for specific business requirements.
Both can be Secured (backed by property, FD, stock, debtors) or Unsecured (based on business financials and creditworthiness).
Key Benefits
Pay Interest Only on UsageUnlike term loans, you pay interest only on the amount actually withdrawn
Revolving Credit LineRepay and re-draw anytime within your sanctioned limit
Secured & Unsecured OptionsPledge property, FD, stock or get unsecured limits based on financials
Flexible Working CapitalManage cash flow gaps, seasonal demands, and inventory needs
Quick ProcessingApproval within 5-7 working days for existing bank customers
Annual RenewalFacility renewed annually based on business performance
Eligibility & Documents
Business VintageMinimum 2-3 years in operation
ITR & FinancialsLast 2-3 years ITR, audited balance sheet & P&L
Bank StatementsLast 12 months current account statements
GST ReturnsLast 12 months GST return filings
Collateral (for Secured)Property documents, FD receipts, or stock statements
KYCPAN, Aadhaar, business registration certificate