Cash credit, overdraft & short-term finance
Working capital finance that matches your cash cycle
Working capital funds the gap between paying suppliers and getting paid by customers. The most common forms are cash credit (CC) against stock and receivables, overdraft (OD) against property or deposits, and short-term loans for seasonal peaks.
With a CC or OD limit, interest is charged only on the amount you actually use, so it is often much cheaper than a term loan for day-to-day needs. Pricing depends on collateral and financials, so we quote after assessing your business.
- Rate
- On profile
- Typical amount
- ₹10 L – ₹25 Cr
- Tenure
- Annual renewable limits
Rates are indicative and depend on your profile, lender policy and benchmark rates. Final terms are set by the lender.
Who this loan is for
- Traders and distributors carrying stock
- Manufacturers with receivable cycles of 30–90 days
- Businesses with seasonal demand peaks
Eligibility
- Business vintage of 2–3 years with audited financials
- Regular GST filings and stock statements
- Collateral for larger limits — property, FD or CGTMSE cover for eligible MSMEs
Documents commonly required
- 3 years audited financials and ITR
- 12 months bank statements for all accounts
- GST returns and latest stock and debtors statement
- Collateral property documents if applicable
What affects your interest rate
- Collateral cover offered against the limit
- Financial ratios — current ratio, debt-to-equity and profitability
- Conduct of existing limits and GST compliance
How RateWise compares lenders
We work out the right limit size from your operating cycle, so you don't pay commitment charges on an oversized limit.
We compare interest, renewal fees, stock audit charges and collateral requirements.
Where a takeover of an existing limit makes sense, we compare the full switching cost.
How the application works
01
Share your profile
A short call or WhatsApp chat about income, existing EMIs and what you need. No documents at this stage.
02
Shortlist lenders
We match your profile to the lenders whose policy fits and apply only where approval is realistic.
03
Compare offers
Sanctions are compared on rate, processing fee, insurance, prepayment terms and tenure — not rate alone.
04
Valuation, legal and disbursal
We coordinate property valuation, legal checks and signing with the lender until the money is disbursed.
Common mistakes to avoid
- Using working capital for long-term capital spending
- Letting stock statements and renewals lapse
- Keeping the limit fully drawn for months, which lenders read as stress
Estimate your EMI
₹30,00,000
8.50%
20 years
Monthly EMI
₹26,035
- Principal
- ₹30,00,000
- Total interest
- ₹32,48,327
- Total payable
- ₹62,48,327
Use this calculator to estimate your EMI. Actual EMI depends on the final sanctioned amount, interest rate and tenure offered by the lender.
Want to know what rate you may qualify for?
Check My RateWorking Capital Loan FAQs
What is the difference between cash credit and overdraft?
Cash credit is usually secured against stock and receivables and sized on your operating cycle. An overdraft is typically secured against property or deposits. In both, interest is charged only on the amount used.
Can I get working capital without collateral?
Smaller limits may be available unsecured or under the CGTMSE guarantee for eligible MSMEs. Larger limits usually need collateral.