Overdraft (OD) and Cash Credit (CC) Consultant in Delhi NCR

Overdraft (OD) and Cash Credit (CC) are working capital facilities designed to help eligible businesses manage short-term cash-flow requirements. An OD facility may be structured against eligible security such as property or fixed deposits, while CC facilities are commonly linked to business working-capital requirements and may involve security such as stock, receivables or other acceptable collateral. The exact structure, drawing limits, interest calculation and security requirements depend on the lender and facility terms.

The eligible OD or CC limit depends on factors such as business turnover, banking transactions, financial statements, existing liabilities, credit profile, repayment capacity and the security offered, where applicable. For property-backed facilities, the lender may also consider property value and applicable lending criteria. There is no fixed limit for every business. AF Advisors helps businesses assess their requirement and explore suitable working capital options across its lender network.

Eligibility varies between lenders and depends on the business and financial profile. Manufacturers, traders, service businesses, companies, partnerships, LLPs, proprietorships and other eligible business entities may be considered, subject to lender criteria. Lenders may review business vintage, turnover, banking history, profitability, credit history, existing obligations and repayment capacity before deciding the applicable facility and limit.

The security requirement depends on the facility and lender. Depending on the structure, lenders may consider residential or commercial property, fixed deposits, stock, receivables or other acceptable security. The lender may conduct legal, technical and valuation checks for property offered as collateral. AF Advisors helps businesses understand applicable security requirements and explore lenders based on their business profile and funding requirement.

The documentation depends on the lender, business structure and facility being requested. Common documents may include PAN/KYC, business registration documents, ITRs, financial statements, GST returns, bank statements and details of existing loans or credit facilities. If the facility is secured against property, ownership and title documents may also be required. Additional documents can be requested during the lender's assessment.

The applicable interest rate and interest calculation method depend on the lender, facility structure, sanctioned limit, utilisation, borrower profile and loan agreement. OD and CC facilities can have different pricing and applicable charges. Before selecting a facility, businesses should review the interest rate along with processing fees, renewal charges, security-related costs and other applicable expenses. AF Advisors helps borrowers compare suitable lender terms based on their requirements.