CC / OD Limit
What is CC / OD Limit?
- CC (Cash Credit) Limit and OD (Overdraft) Limit are types of short-term credit facilities provided by banks.
- They allow borrowers to withdraw money up to a certain pre-approved limit to meet working capital needs or urgent expenses.
- You only pay interest on the amount you actually use, not on the entire limit.
- CC is often used by businesses and is linked to assets like inventory or receivables.
- OD is usually linked to savings or fixed deposit accounts and is common for individuals or businesses.