Cash Credit

A Cash Credit Loan is a short-term financing option offered by banks and financial institutions to help businesses manage their working capital needs. Under this facility, a company can withdraw funds beyond its account balance, up to a sanctioned limit, to cover operational costs, raw material purchases, salaries, or inventory management. Interest is charged only on the amount utilized, not on the total limit. This makes it a flexible solution for maintaining smooth cash flow and managing short-term liquidity challenges. It is ideal for manufacturers, traders, and service providers requiring continuous access to funds for daily operations.