Cash Credit, commonly known in short as CC, is a facility of a short-term loan under which the borrower can withdraw funds in excess of his credit balance as per his requirements and business needs.Working capital is required for day-to-day business operations.The cash credit facility offers flexible withdrawals and deposits into the loan account. The withdrawals can be made up to the sanctioned amount at any point of time during the course of a loan. The borrower can also deposit excess cash into the loan account so as to lower the burden of interest.
1.FULFILLS THE WORKING CAPITAL REQUIREMENT
2.INTEREST ONLY ON THE AMOUNT UTILIZED
3.INTEREST IS TAX DEDUCTIBLE