Cash credit that helps you
A secured working capital limit, given on the basis of your turnover, stock and receivables. Draw what you need, repay when sales come in, and pay interest only on what you use.
- Higher amounts
- Ex-banker credit team
- Multi-lender comparison
Cash Credit Limit, explained simply
A cash credit (CC) limit funds the day-to-day financial requirements of your company — buying stock, paying suppliers, meeting expenses between sale and collection.
Banks set it from your financials, turnover, value of stock and the net worth of the promoters, and you can draw up to your monthly drawing power. Our calculator shows both the turnover-method limit and the drawing power your stock statement supports.
- Revolving limit, renewed annually
- Interest charged only on the amount actually used
- Limit based on turnover, stock and receivables
- Collateral: residential, commercial or industrial property
- Enhancement as your turnover grows
- Can be combined with a term loan for machinery
Know your numbers before the bank does
Drawing power & CC limit Working capital
Drawing power = (stock + debtors < 90 days − creditors) × (1 − margin) · Turnover method: need 25% of turnover, bank funds 20%
Indicative estimate using standard lending formulas and editable default rates. Final amount, rate and terms are decided by the lender after appraisal.
Overdraft vs term loan Pay for use
OD interest = limit × average utilisation × rate · Term loan: year-1 interest on the full amount (3-yr EMI loan)
Indicative estimate using standard lending formulas and editable default rates. Final amount, rate and terms are decided by the lender after appraisal.
Who qualifies
Business Criteria
- Proprietorship, partnership or company with audited financials
- Steady turnover with regular stock and receivables
- Healthy promoter net worth and repayment track
Security Criteria
- Hypothecation of stock and book debts
- Collateral property: freehold residence, or approved commercial / industrial property
- Clear title, free from encumbrance
What you'll need
- Photograph of all applicants
- KYC: PAN card + Aadhaar / Passport / Driving Licence
- Residence proof: Passport / Voter ID / Driving Licence / recent electricity or telephone bill
- Office proof: GST registration / Udyam certificate / utility bill of the premises
- Income proof: last 2 years ITR with computation of income and financials
- Bank statement: last 6 months of the main business account
- Constitution proof: MOA–AOA / partnership deed (for companies and firms)
- Existing loans: repayment schedules / sanction letters of all running loans
- Ownership proof: electricity bill / house tax receipt / property papers of office or residence
- Audited financials: last 2 years with audit report and all schedules
- Stock statement and debtors ageing list
- Projections: projected turnover and balance sheet for the next year
- Collateral: property papers
- GST returns for the last 12 months
Tip: use our document checklist builder to tick off what you have and send the pending list to us on WhatsApp.
When this loan is the right tool
From first question to disbursal, in four steps
Check eligibility
Use a calculator or the 3-step check. No effect on your credit score.
Share documents
Our checklist tells you exactly what's needed — send it on WhatsApp or drop it at our office.
Ex-banker pre-check
Our in-house credit team reviews your file and selects the lenders most likely to approve at the best rate.
Sanction & disbursal
We follow up with the lender until the money is in your account — and stay for after-sales support.
Cash Credit Limit: your questions answered
For many MSE borrowers banks use the turnover method: working capital need of about 25% of projected annual turnover, of which the borrower brings 5% and the bank funds up to 20%. The actual monthly drawing is limited by your drawing power.
Drawing power = (stock + eligible debtors − trade creditors) × (1 − margin). Banks commonly keep a 25% margin. It is updated from the stock statement you submit every month.
No. Interest is charged only on the amount you actually use, calculated daily.
Stock and book debts are hypothecated, and lenders usually also take collateral property with clear title.
Yes. The limit is reviewed annually on your latest financials, and can be enhanced as turnover grows.
A CC is tied to stock and receivables and needs a stock statement; an overdraft is a limit sanctioned against property, FD or, in unsecured form, against your income and banking.
Typically receivables up to 90 days old. Older debtors are excluded from drawing power.
Yes. Many businesses combine a CC limit for working capital with a term loan for machinery or expansion.
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Apply for cash credit limit with an ex-banker on your side
One conversation, many lenders. We pre-check your file, negotiate the rate and stay with you after disbursal.
- WhatsApp+91 98717 48555
- Office011-45123555
- Emailsandeep@bhavyaa.com
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