With an OD and CC facility, businesses have the flexibility to withdraw funds as needed, up to a predetermined credit limit. This allows for quick access to funds without the need for frequent loan applications. Repayments can be made as per the business's cash flow cycle. Businesses can choose to repay the entire outstanding amount at once or make regular payments based on their convenience.
Interest is charged only on the amount utilised from the OD or CC limit, not on the entire sanctioned amount. This helps in managing interest costs effectively.
The OD and CC facility is a revolving credit line, meaning that as you repay the borrowed amount, the available credit limit replenishes. This provides ongoing access to funds without the need for reapplying.
Depending on the creditworthiness of the business, collateral requirements for OD and CC facilities can vary. It could range from movable assets, receivables, inventory, or property.
Unlike term loans, there are no fixed Equated Monthly Instalments (EMIs) with OD and CC facilities. Businesses have the flexibility to repay as per their financial situation, making it easier to manage cash flows.
Businesses can access funds quickly and easily through various channels such as checks, online transfers, ATM withdrawals (for OD linked to accounts), or through the bank branch.
The documentation process for OD and CC facilities is generally simpler compared to traditional term loans. This saves time and effort for businesses during the application process.
OD and CC facilities are excellent tools for managing working capital needs. Businesses can use these funds to bridge gaps in cash flows, pay suppliers, manage inventory, and cover day-to-day operational expenses.
For businesses with seasonal fluctuations in revenue, an OD and CC facility provides the flexibility to access funds during lean periods. This ensures smooth operations throughout the year.
The availability of additional funds through OD and CC facilities empowers businesses to seize growth opportunities. This includes expanding operations, launching new products/services, or investing in marketing efforts.
Since interest is charged only on the utilised amount, businesses can save on interest costs compared to traditional term loans where interest accrues on the entire sanctioned amount. The OD and CC facility can serve as an emergency fund for unforeseen expenses or sudden opportunities that require immediate capital. Businesses can act swiftly without disrupting operations.
By having access to a readily available credit line, businesses can enhance their financial stability. They can navigate market uncertainties, capitalise on growth opportunities, and maintain a healthy cash reserve.
Read on to know the criteria required to apply for our OD and CC Loan.
Business Entity : The business should have a certain operational history, typically ranging from 1 to 3 years, depending on the lender.
Turnover : Lenders often require a minimum annual turnover, which varies among lenders.
Credit Score : A good credit score is preferred, showing your ability to manage credit and repay debts.
Financial Stability : Your business should have a stable cash flow and financial history.
Collateral or Security : Depending on the amount, lenders may require collateral such as property, stocks, or other assets.
Nature of Business : The type of business matters, with some lenders having preferences for certain industries.
Compliance : The business should be compliant with all statutory regulations and tax laws.
• Borrowers applying for a commercial car loan for old vehicles need to fulfil the following criteria along with the basic ones:
• Customers need to have relevant experience of 3 to 5 years depending on individual profile.
• Minimum 1 year of ownership of at least 2 vehicles.
• At least 1-year repayment track of commercial vehicles
An EMI calculator is a useful tool that can help you estimate the monthly installments you will have to pay towards your cash credit and overdraft within a specific period. By using the Noble Fintech Advisory EMI calculator, you can calculate your EMI beforehand, which can help you plan your finances better. Additionally, you can check your eligibility and compare different loan options using Noble Fintech Advisory OD and CC loan calculator.
1) Aadhaar Card
2) Pan Card
3) Passport
4) Voter ID
5) Driving License
1) Certificate of Incorporation
2) Partnership Deed
3) GST Registration Certificate
1) Profit and Loss Statement
2) Balance Sheet
3) Cash Flow Statement
1) Utility bills
2) Rental agreement
1) Business bank account statements for the last 6 to 12 months.
1) Last 2-3 years' ITR for the business and the owner(s).
1) Details of stock-in-hand and outstanding debtors.
1) Detailed report of outstanding customer invoices.
1) Ownership proof of property, stocks, or any other assets being offered as collateral.
1) Any licenses or permits required for your business.
1) Recent credit score report for the business.
1) If you have existing loans or credit facilities, provide details of those
An Overdraft (OD) is a financial facility offered by banks that allows an individual or business to withdraw more money from their bank account than what is available in the account balance. It acts as a short-term credit line.
When you have an Overdraft facility, you can withdraw funds up to an approved limit, even if your account balance is zero. The amount withdrawn is treated as a loan, and interest is charged only on the amount used.
Individuals, businesses, and even current account holders can avail an Overdraft facility based on their creditworthiness and relationship with the bank.
Flexible Access to Funds: Allows you to withdraw funds as needed, up to the approved limit.
Interest Only on Amount Used: You only pay interest on the amount you withdraw, not the entire overdraft limit.
Emergency Fund: Acts as a financial safety net for unexpected expenses or emergencies.
A Cash Credit (CC) facility is a type of loan provided to businesses to meet their working capital needs. It is usually offered against the hypothecation of stock or inventory.
Under a Cash Credit facility, the bank provides a revolving credit limit to the business, allowing them to withdraw funds as needed. Interest is charged on the amount utilized, similar to an Overdraft.
Businesses, especially those with regular sales and inventory turnover, can avail a Cash Credit facility to manage their day-to-day operational expenses.
Continuous Source of Funds: Provides a continuous flow of working capital, especially useful for businesses with fluctuating cash flows.
Interest Only on Utilized Amount: Interest is charged only on the amount withdrawn, not the entire credit limit.
Flexible Repayment: Businesses can repay the amount as per their cash flow, within the agreed-upon tenure.
Interest is usually calculated on a daily or monthly basis, depending on the bank's policies. The rate of interest can be fixed or linked to a benchmark rate like the MCLR (Marginal Cost of Funds Based Lending Rate).
With an OD and CC facility, businesses have the flexibility to withdraw funds as needed, up to a predetermined credit limit. This allows for quick access to funds without the need for frequent loan applications. Repayments can be made as per the business's cash flow cycle. Businesses can choose to repay the entire outstanding amount at once or make regular payments based on their convenience.
Interest is charged only on the amount utilised from the OD or CC limit, not on the entire sanctioned amount. This helps in managing interest costs effectively.
The OD and CC facility is a revolving credit line, meaning that as you repay the borrowed amount, the available credit limit replenishes. This provides ongoing access to funds without the need for reapplying.
Depending on the creditworthiness of the business, collateral requirements for OD and CC facilities can vary. It could range from movable assets, receivables, inventory, or property.
Unlike term loans, there are no fixed Equated Monthly Instalments (EMIs) with OD and CC facilities. Businesses have the flexibility to repay as per their financial situation, making it easier to manage cash flows.
Businesses can access funds quickly and easily through various channels such as checks, online transfers, ATM withdrawals (for OD linked to accounts), or through the bank branch.
The documentation process for OD and CC facilities is generally simpler compared to traditional term loans. This saves time and effort for businesses during the application process.
OD and CC facilities are excellent tools for managing working capital needs. Businesses can use these funds to bridge gaps in cash flows, pay suppliers, manage inventory, and cover day-to-day operational expenses.
For businesses with seasonal fluctuations in revenue, an OD and CC facility provides the flexibility to access funds during lean periods. This ensures smooth operations throughout the year.
The availability of additional funds through OD and CC facilities empowers businesses to seize growth opportunities. This includes expanding operations, launching new products/services, or investing in marketing efforts.
Since interest is charged only on the utilised amount, businesses can save on interest costs compared to traditional term loans where interest accrues on the entire sanctioned amount. The OD and CC facility can serve as an emergency fund for unforeseen expenses or sudden opportunities that require immediate capital. Businesses can act swiftly without disrupting operations.
By having access to a readily available credit line, businesses can enhance their financial stability. They can navigate market uncertainties, capitalise on growth opportunities, and maintain a healthy cash reserve.
Business Entity : The business should have a certain operational history, typically ranging from 1 to 3 years, depending on the lender.
Turnover : Lenders often require a minimum annual turnover, which varies among lenders.
Credit Score : A good credit score is preferred, showing your ability to manage credit and repay debts.
Financial Stability : Your business should have a stable cash flow and financial history.
Collateral or Security : Depending on the amount, lenders may require collateral such as property, stocks, or other assets.
Nature of Business : The type of business matters, with some lenders having preferences for certain industries.
Compliance : The business should be compliant with all statutory regulations and tax laws.
1) Aadhaar Card
2) Pan Card
3) Passport
4) Voter ID
5) Driving License
1) Certificate of Incorporation
2) Partnership Deed
3) GST Registration Certificate
1) Profit and Loss Statement
2) Balance Sheet
3) Cash Flow Statement
1) Utility bills
2) Rental agreement
1) Business bank account statements for the last 6 to 12 months.
1) Last 2-3 years' ITR for the business and the owner(s).
1) Details of stock-in-hand and outstanding debtors.
1) Detailed report of outstanding customer invoices.
1) Ownership proof of property, stocks, or any other assets being offered as collateral.
1) Any licenses or permits required for your business.
1) Recent credit score report for the business.
1) If you have existing loans or credit facilities, provide details of those
An EMI calculator is a useful tool that can help you estimate the monthly installments you will have to pay towards your cash credit and overdraft within a specific period. By using the Noble Fintech Advisory EMI calculator, you can calculate your EMI beforehand, which can help you plan your finances better. Additionally, you can check your eligibility and compare different loan options using Noble Fintech Advisory OD and CC calculator.
An Overdraft (OD) is a financial facility offered by banks that allows an individual or business to withdraw more money from their bank account than what is available in the account balance. It acts as a short-term credit line.
When you have an Overdraft facility, you can withdraw funds up to an approved limit, even if your account balance is zero. The amount withdrawn is treated as a loan, and interest is charged only on the amount used.
Individuals, businesses, and even current account holders can avail an Overdraft facility based on their creditworthiness and relationship with the bank.
Flexible Access to Funds: Allows you to withdraw funds as needed, up to the approved limit.
Interest Only on Amount Used: You only pay interest on the amount you withdraw, not the entire overdraft limit.
Emergency Fund: Acts as a financial safety net for unexpected expenses or emergencies.
A Cash Credit (CC) facility is a type of loan provided to businesses to meet their working capital needs. It is usually offered against the hypothecation of stock or inventory.
Under a Cash Credit facility, the bank provides a revolving credit limit to the business, allowing them to withdraw funds as needed. Interest is charged on the amount utilized, similar to an Overdraft.
Businesses, especially those with regular sales and inventory turnover, can avail a Cash Credit facility to manage their day-to-day operational expenses.
Continuous Source of Funds: Provides a continuous flow of working capital, especially useful for businesses with fluctuating cash flows.
Interest Only on Utilized Amount: Interest is charged only on the amount withdrawn, not the entire credit limit.
Flexible Repayment: Businesses can repay the amount as per their cash flow, within the agreed-upon tenure.
Interest is usually calculated on a daily or monthly basis, depending on the bank's policies. The rate of interest can be fixed or linked to a benchmark rate like the MCLR (Marginal Cost of Funds Based Lending Rate).
At Noble Fintech Advisory, we strive to help you go beyond the expected. We don't just offer loans; we provide financial solutions tailored to your needs. Our commitment to transparency, excellence in customer services, our innovative loan products ensures that you achieve your goals with confidence.
217, Off B/2, Parmar Trade Center, 12 Cannaught House And Road, Pune, Maharashtra, 411001
