WORKING CAPITALLOAN / CC-OD
A Working Capital Loan, available as a Cash Credit (CC) or Overdraft (OD) facility, gives your
business a revolving line of credit to manage everyday operating expenses — payroll, raw material
purchases, supplier payments, and receivable gaps. Unlike a term loan, you only pay interest on the
amount you actually use, and the limit replenishes as you repay. Gayatri Finserv connects you with
banks and NBFCs offering the most competitive limits against your stock, book debts, or turnover.
Features & Benefits
- Revolving credit limit — withdraw and repay repeatedly
- Loan amount: ₹5 Lakhs to ₹5 Crores
- Interest charged only on utilised amount
- Sanction in 5–7 working days
- Limit based on stock, book debts & turnover
- Renewable annually with enhanced limits on good track record
- Available as Cash Credit (CC) or Overdraft (OD)
- Drawing power linked to stock & debtor statements
- No end-use restriction within business operations
- Doorstep service across Ahmedabad
Who Can Apply?
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Sole Proprietors
Traders and retailers with 3+ years of business vintage and regular stock turnover.
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Partnership Firms
Registered partnerships with healthy current account banking and filed ITRs.
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Private Limited Companies
Companies with audited financials and an established trading or manufacturing cycle.
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Manufacturers & MSMEs
Units needing funds to bridge the gap between raw material purchase and sale realisation.
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Traders & Distributors
Businesses carrying inventory or extending credit to buyers who need a revolving limit.
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Contractors
Project & civil contractors needing funds to bridge milestone-based payment cycles.
Documents Required
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PAN Card & Aadhaar Card (All Directors/Partners)
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Business Proof — GST Certificate / Shop Act / MOA-AOA
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Last 2–3 Years ITR with P&L & Balance Sheet
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Bank Statement — Last 12 Months (Current Account)
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Stock & Book Debt Statement (Latest)
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GST Returns — Last 12 Months
Frequently Asked Questions
What is the difference between Cash Credit and Overdraft?+
Cash Credit (CC) is sanctioned against the value of stock and book debts and is typically used by trading and manufacturing businesses. An Overdraft (OD) is sanctioned against fixed deposits, property, or other collateral and can be used more flexibly. Both work as a revolving limit where you pay interest only on the amount drawn.
How is my working capital limit calculated?+
Lenders typically assess your limit based on your annual turnover, stock holding, book debts (receivables), and operating cycle. A common method is the turnover method, where the limit is set at around 20% of projected annual sales, subject to the lender's internal policy.
Do I need to provide collateral?+
Cash Credit facilities are usually secured by hypothecation of stock and book debts rather than property. Some lenders may also ask for a collateral-free CC up to a certain limit under government-backed schemes, while higher limits may require additional security or a personal guarantee.
How often do I need to renew the limit?+
Working capital limits are typically reviewed and renewed annually based on updated financials, stock statements, and account conduct. Businesses with a clean repayment track record often get their limits enhanced at renewal.
What is drawing power and why does it matter?+
Drawing power is the amount you're actually allowed to withdraw at any given time, calculated from your latest stock and book debt statement — it can be lower than your sanctioned limit. Submitting accurate, up-to-date statements ensures you get full access to your available limit.
How is interest charged on a CC/OD account?+
Interest is charged only on the amount you withdraw and only for the number of days it remains outstanding — not on the entire sanctioned limit. This makes CC/OD significantly more cost-efficient than a term loan for managing short-term cash flow needs.