Pay Only on Usage
Interest charged on daily outstanding utilisation, not on sanctioned limit - efficient for businesses with cyclical drawdowns.
Cash Credit / OD
Cash Credit, OD & Working Capital
Revolving CC / OD and Working Capital Term Loans for day-to-day operations, supplier payments, inventory and receivables. Structured by CAs, placed across Government Banks, MNC Banks and Private Banks.
- Loan Amount
- ₹25 Lakhs – ₹100 Crore
- Interest Rate
- 9% – 13% p.a.
- Tenure
- 12 Months (Annually Renewable)
- Processing Fee
- 0.25% – 1% annually
About Cash Credit / OD Limit
A Cash Credit (CC) or Overdraft (OD) limit is the operational backbone of any growing business - funding inventory build-up, supplier payments, debtor receivables, tender execution and seasonal cash flow swings. Drawing power is computed against stock, book debts, or pledged property, and interest accrues only on the actual utilisation. BankBrick structures CC, OD and Working Capital Term Loans from ₹25 Lakhs to ₹100 Crore for manufacturing units, distributors, traders, contractors, exporters and service enterprises. Our team prepares CMA data and MPBF computation and places the proposal with the bank offering the highest drawing power and most competitive rate - including takeover of existing limits where pricing is uncompetitive.
Key Features
Drawing Power Optimised
Our CAs compute the maximum permissible bank finance (MPBF) and structure stock & debtor reporting to extract the highest drawing power.
CGTMSE or Secured Route
Choose stock/debtor hypothecation, property mortgage, or CGTMSE-covered CC/OD without collateral - we structure the right mix.
LC, BG & Bill Discounting Sublimits
Carve LC, BG, bill discounting and PCFC sublimits within the same sanction - improves capital efficiency and execution speed.
Tender & Project Friendly
Working capital structured around government tender execution, private contracts and project-linked receivables.
Bank Takeover & Renewal
Takeover existing limits at better pricing; annual renewal and enhancement managed end-to-end with updated CMA.
Why Choose BankBrick for Cash Credit / OD Limit?
- CMA & MPBF prepared by CAs - maximises drawing power and sanctioned limit
- Funding placed across Government Banks, MNC Banks and Private Banks
- Structuring expertise - CC, OD, WCDL, sublimits, consortium and multiple-banking
- CGTMSE-backed CC route for businesses without property collateral
- Solutions for low CIBIL, GST gaps, delayed payments and tender funding pressure
- Banking takeover and renewal advisory - better pricing, higher limits
Eligibility Criteria
| Entity Type | Proprietorship, Partnership, LLP, Pvt Ltd, Public Ltd |
|---|---|
| Vintage | 2+ years of operations (1+ year considered with strong financials) |
| Annual Turnover | ₹1 Crore and above (sector-specific exceptions considered) |
| GST & Compliance | Regular GST filings preferred; gaps and irregularities addressed case-by-case |
| Security | Hypothecation of stock & debtors; optional property mortgage; or CGTMSE cover |
| Bureau Profile | CMR-1 to CMR-7 (Commercial CIBIL); low CIBIL cases restructured separately |
Required Documents
- PAN of entity + KYC of promoters/directors
- GST Registration & last 12 months GSTR-1 / 3B returns
- Last 3 Years audited financials + ITR
- Last 12 Months bank statements (all banking)
- Stock & debtor statements (latest)
- CMA data & MPBF projections (we prepare)
- Property documents (if collateral-backed)
- Sanction letters of existing facilities (if any)
FAQ
Common Questions, Clear Answers
Have more questions? Our team is here to help. Reach us on WhatsApp or give us a call.
What is the difference between Cash Credit and Overdraft?
Cash Credit is a working capital facility secured primarily against current assets (stock and book debts) with drawing power recomputed monthly. Overdraft is typically extended against fixed deposits, property, or as a clean limit linked to the current account - drawing power is the sanctioned amount itself. BankBrick advises on the right structure based on your asset profile and usage pattern.
How is Drawing Power (DP) calculated?
DP is derived from paid-up stock (cost less margin), eligible book debts (within an agreed ageing window, typically under 90 days), less creditors for goods. The bank applies a margin (usually 25%) to arrive at the drawing power against current assets. Our team structures stock/debtor reporting to maximise eligible DP.
Can I get a CC limit without property as collateral?
Yes. CC limits up to ₹5 Crore can be sanctioned under CGTMSE without primary or third-party collateral. Beyond ₹5 Crore, hybrid structures with partial CGTMSE cover and partial property mortgage are common.
Can I take over my existing CC from another bank?
Yes - bank takeover is a standard exercise. We assess your current pricing, prepare a fresh CMA, and place the proposal with banks willing to offer better rate, higher DP, or relaxed margin. Takeovers typically close in 4–8 weeks.
What sublimits can be carved within a CC limit?
Letter of Credit (LC), Bank Guarantee (BG), Bill Discounting / WCDL, Buyer's Credit, and PCFC (for exporters) are routinely structured as sublimits within the main CC sanction - improving capital efficiency and reducing duplicate processing.
Discuss Your Requirements
Discuss Your Requirements