Overdraft (OD)

Manage unexpected expenses and cash flow fluctuations with ease. An Overdraft facility is linked to your current account, allowing you to withdraw funds up to a pre-approved limit even if your balance hits zero. It acts as an instant financial cushion for your business. Allowed to overdraw your account up to a pre-approved limit. Ideal for short-term cash-flow mismatches; interest charged only on the overdrawn

Types:

• Secured OD (against FD, property)
• Unsecured OD (based on banking & income)

Key Features:

• Flexible withdrawal & repayment
• Interest only on utilized amount

Difference vs CC:

• OD is simpler, less documentation
• CC is more structured & business-focused

Best for: Short-term liquidity

Ideal for: Current-account-holding businesses and professionals.

Access continuous funding tailored to your business cycles. A Cash Credit facility provides a dedicated line of credit against your company's inventory and receivables, ensuring you always have the liquidity needed to meet ongoing operational demands. You only pay interest on the amount you use. A revolving working-capital limit where you draw funds up to a sanctioned “Drawing Power” (based on stock/receivables).

How it works:

• Bank gives a limit (e.g., ₹50 lakh)
• You withdraw as needed
• Interest charged only on used amount

Security:

• Stock
• Debtors
• Sometimes collateral

Key Features:

• Annual renewal
• Monthly stock statement required

Ideal for: Traders, exporters, medium‑scale businesses.