Cash Credit Loan

A cash credit loan is a type of short-term financing provided by banks and financial institutions to help businesses meet their working capital requirements. It allows companies to withdraw money multiple times up to a sanctioned limit, even if their account balance is low. Interest is charged only on the amount utilized, not the total limit. This facility is ideal for managing day-to-day expenses, purchasing inventory, or maintaining cash flow without disrupting business operations. The loan is usually secured against stock, receivables, or other business assets.