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Structure dynamic revolving working capital credit limits backed by stock, debtors, or real estate collateral. Enjoy complete flexibility with zero fixed monthly EMI pressure.
Compare CC/OD limits across 35+ lenders
A revolving working capital credit limit sanctioned against stock, book debts, or property collateral, allowing businesses to withdraw as needed and pay interest only on utilized funds.
Working capital mismanagement is the single biggest reason profitable businesses face cash flow crises in India. A business earning ₹5 Crores a year can struggle for liquidity if customers pay in 90 days while vendors demand payment in 30. Cash Credit (CC) and Overdraft (OD) facilities are purpose-built to bridge this gap — and unlike term loans where interest accrues on the full disbursed amount from Day 1, here you pay daily interest only on what you actually withdraw.
At Sanction's commercial banking desk, we handle the full lifecycle of CC/OD structuring — CMA data preparation, Drawing Power calculation, stock statement format setup, banking consortium architecture, and annual renewal management — so your working capital limit never expires mid-cycle. Any business receipts deposited back into the CC/OD account immediately reduce your daily debit balance and stop interest from accruing on that portion.
Structure the exact working capital limits required for trade inventory, manufacturing cycles, or cashflow spikes.
Smart working capital management tailored for trade and manufacturing liquidity.
Compare working capital benchmark rates, margin requirements, and renewal terms across commercial banking desks.
| Commercial Bank | Interest Rate (% p.a.) | Max Limit Facility | Processing Fee | Action |
|---|---|---|---|---|
|
State Bank of India
Stock & Book Debts CC with 25% margin on stock, 30% on debtors
|
8.75% – 10.50% | Up to ₹20 Crores | 0.35% to 0.50% | Check Limit → |
|
HDFC Bank
Drop-line OD against commercial & residential property assets
|
8.90% – 11.25% | Up to ₹20 Crores | 0.50% of limit | Check Limit → |
|
ICICI Bank
Working capital consortium with digital drawing power updates
|
8.95% – 11.50% | Up to ₹15 Crores | 0.50% of limit | Check Limit → |
|
Axis Bank
Fast turnaround on annual limit enhancements and audits
|
9.10% – 11.75% | Up to ₹15 Crores | 0.50% to 0.75% | Check Limit → |
|
Bank of Baroda
Competitive wholesale working capital credit rates for MSMEs
|
8.85% – 10.75% | Up to ₹20 Crores | 0.35% to 0.50% | Check Limit → |
See how much monthly interest you save compared to a conventional term loan.
Commercial benchmarks for traders, manufacturers, and corporate businesses.
From working capital appraisal to current account limit setup.
Transparent fee schedule for working capital facilities.
| Fee Category | Applicable Charges | Details & Notes |
|---|---|---|
| Interest Rate | 8.00% to 15.00%+ p.a. | Computed on daily utilized balance, billed monthly into current account. |
| Processing / Renewal Fee | 0.25% to 0.75% of limit quantum | Applicable at annual renewal / sanction review. |
| Stock Audit Charges | ₹5,000 to ₹15,000 per year | For annual physical inventory & book debt audit by chartered accountant. |
| CERSAI & ROC Filing | ₹500 to ₹2,500 + Stamp Duty | Mandatory charge registration with ROC & CERSAI. |
Direct institutional tie-ups and credit desk liaison across India's leading commercial lenders.
Common questions about Cash Credit, Overdrafts, and Drawing Power.
Cash Credit (CC) is specifically sanctioned against primary security of business stock and book debts, while Overdraft (OD) can be sanctioned against fixed deposits, commercial property, or financial cashflows.
Drawing Power is calculated as: [Paid Stock + Debtors under 90 days] minus [Creditors + Bank Margin (usually 25-30%)]. You can withdraw funds up to your sanctioned limit or DP, whichever is lower.
No. If your utilized balance is zero, your interest charge for that day is exactly zero.
