A Cash Credit (CC) & Overdraft (OD) is a short-term source of financing for a company. In other words, a short-term loan extended to a company by a bank. It is categorized under the Working Capital Loan. It enables a company to withdraw money from a bank account without keeping a credit balance. The account is limited to only borrowing up to the borrowing limit. Also, interest is charged on the amount borrowed and not the borrowing limit.
Features of Cash Credit Loan
- Cash credit loan is given to meet the working capital requirements of a business
- It is given against a collateral security.
- Interest is generally charged only on the amount of loan taken by the customer and not on the amount of credit sanctioned
- Cash credit loan is a short-term loan with specified monthly/quarterly repayment structure as decided by the lender
- The applicant is allowed to withdraw the funds made available to him to meet the day-to-day working capital requirement by way of a running account
- A cheque book is issued in the name of the company and they can withdraw funds as per the requirement
- The applicant has the option to repay the loan as frequently as desired (daily/weekly), or as per the repayment structure is drawn by the lender
- Even individual applicants can avail this type of facility against their fixed deposits(as a loan) and save on interest
Overdraft is a hybrid between a term loan and an overdraft facility. Interest charged only on the amount utilized by you.
Key Benefits
- Unique combination of Term Loan and Overdraft
- Interest charged only on the amount utilised
How to get Working Dropline Overdraft through Accord Solutions
- Call / SMS our help line +91 – 9819605025 Or Apply on the website with your details.
- Our Financial expert will meet you personally understand your needs. and will collect the documents required.
- Our Financial expert will Follow up and Negotiation with banks to work Out the best terms and conditions with the lowest interest rate, charges along with many other value additions.
- Our Financial expert will Assist in preparation and execution of legal documents and disbursement.