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Cash Credit

Draw, repay, repeat — as business demands.

Facility: Revolving credit limit
Limit: Linked to stock & debtors
Security: Hypothecation of current assets

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At A Glance

Purpose: A reusable limit backed by your stock and the money customers owe you
Interest: Charged only on the part you use
Who can apply: A trading or manufacturing business with a regular stock cycle

See what you will need

The Short Version

What Cash Credit actually does for you.

A limit that you can use again and again, backed by your stock and the payments due from your customers. Draw money when you need it, repay it as sales come in, and draw again as your business cycle repeats.

What's included

Drawing power reassessed monthly against stock statements
Interest charged only on the utilised portion
Renewed annually, with headroom to scale as turnover grows
Works alongside term loans and other trade facilities

Do you qualify?

A trading or manufacturing business with a regular stock cycle
Audited financials and GST filings in good order
Satisfactory conduct on existing current accounts
Proprietorship, partnership, LLP or company
A good credit record for the business and its promoters

Which One Are You

Proprietor / ProfessionalYou run a business in your own name, or practise a profession such as medicine, law, accountancy or architecture. There is no separate company, so the lender looks at you and the business together: your ITRs, your financial statements and your business bank account. Clear books and returns filed on time help a lot.

Partnership / LLPThe business is a partnership firm or an LLP. The lender checks the firm's registration, its financials and its bank statements, and also the standing of each partner, so every partner's KYC and tax returns are usually needed. A signed partnership deed that allows borrowing keeps things smooth.

CompanyThe business is a private or public limited company. The lender checks the incorporation papers, the directors and the shareholding, the company's audited financials and its bank statements. A board resolution authorising the loan is usually needed, and directors may be asked to stand as guarantors.

Documents Required (Checklist)

For Self-Employed

Proprietor's KYC: PAN, Aadhaar and address proof
Business proof: GST registration, Udyam, shop licence or equivalent
Last 3 years' ITR with computation of income
Last 3 years' financial statements (P&L and balance sheet), audited where applicable
Last 12 months' current and savings account statements
GST returns for the last 12 months, where registered
Details of existing loans, with EMIs and statements

For Every Applicant

KYC (PAN, Aadhaar, address proof)
Stock and debtor ageing statements

This is the usual list for each type of applicant. Get the exact checklist for cash credit, sent as a PDF you can save or print.

Fees and other charges

Besides interest, a lender may charge a few fees. It helps to know them before you apply, so there are no surprises.

Processing fee

A percentage of the limit plus GST, often somewhere between about 0.5% and 1.5%. It is charged when the limit is sanctioned and again when it is renewed or enhanced.

Annual review or renewal fee

Working-capital limits are reviewed every year. Many lenders charge a renewal or review fee at that point.

Inspection, valuation and legal charges

Where the limit is backed by stock, receivables or property, the lender may charge for inspections, valuations or a legal check.

Penal charges

Going over the sanctioned limit, or not routing enough business through the account, can attract extra interest or charges. Each lender sets its own terms.

Our service fee

For this facility we charge a service fee for taking your file from lender shortlist to disbursal. It covers comparing lenders for you, preparing and checking your documents, answering the lender's queries and following up until the money reaches you. We tell you the amount in writing before you go ahead, so you know exactly what you are paying and nothing comes as a surprise.

These are general guides and every lender sets its own fees. Your expert will share the exact charges in writing before you sign.

Why Growth Capital Services

One conversation, many lenders to compare.

We are a loan consultant, not the lender. We help you compare options from 75+ Banks and NBFCs, prepare your documents, and follow your application through each step.

Check Your Eligibility Talk to Our Loan Expert

Important note: Interest rate, loan amount, tenure, charges, eligibility, approval and disbursement depend on the policy of the respective Bank or NBFC, your profile, credit assessment and the applicable terms. Growth Capital Services is a loan consultant and does not lend money itself. The details on this page are for general information.

Run the numbers

Calculators for your Cash Credit

Try your own figures before you apply — nothing is saved or sent.

Exclusive to GCS

Working Capital Limit Estimator

Based on the RBI Nayak Committee turnover method used by most banks for MSME Cash Credit, Overdraft, CGTMSE and Working Capital Term Loan limits.

Projected Annual Turnover

₹2.00 Cr

₹1 L₹50 Cr

Working Capital Gap

₹50.00 L

25% of turnover

Your Margin Money

₹10.00 L

5% of turnover

Indicative Bank Finance

₹40.00 L

20% of projected turnover — the portion typically financeable via Cash Credit, Overdraft or a Working Capital Term Loan. Actual sanction depends on financials, banking history and lender policy.

Talk to an Expert

Step-by-step guide

Cash Credit process, step by step.

A cash credit limit lets you draw and repay as business runs. Here is how it is arranged.

Share your business details

Tell us your turnover, your stock and receivables and the limit you want.

Work out the limit

We estimate the limit your stock and receivables can support.

Choose a lender

We compare lenders on rate, margin and renewal terms.

Documents and inspection

You submit financials and stock statements, and the lender may inspect your premises.

Sanction and yearly review

The limit is set against your stock and receivables, and reviewed every year.

With GCS, your expert looks at your profile, matches it with suitable lenders, and coordinates with the banks for you. That means less confusion and more confidence when you apply.

Worth Comparing