Mastering Financial Flexibility: Understanding OD/CC Loans with Jessica Fincorp
In the dynamic world of business finance, flexibility is the cornerstone of success. Overdraft (OD) and Cash Credit (CC) loans are financial tools that empower businesses to navigate their cash flow needs with agility and ease. At Jessica Fincorp, we recognize the critical role these facilities play in driving business growth and resilience. Let’s explore the realm of OD/CC loans and understand how they can benefit your enterprise.
What Are OD/CC Loans?
OD/CC loans are available revolving credit by banks and finance companies to various businesses. Companies can withdraw all or part of the sanctioned limits, which they can use when needed to respond to working capital requirements efficiently. With OD/CC loans, there is a constant flow of finances between receivables and payables, leaving no room for disruption in cases of fluctuation in cash cycles.
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Key Features and Benefits of CC/OD Loans
Flexibility:
CC/OD loans offer businesses the flexibility to withdraw funds as needed, up to the approved limit. This ensures that businesses have immediate access to liquidity without going through lengthy approval processes.
Interest Savings:
Interest is charged only on the amount utilized from the CC/OD loan limit, not on the entire sanctioned amount. This helps businesses save significantly on interest costs, as they only pay for what they use.
Effective Working Capital Management:
CC/OD loans are an excellent solution for managing short-term working capital needs. They can be used for purposes such as purchasing inventory, paying suppliers, or covering operational expenses during cash flow crunches.
Catering to Seasonal Variations:
Businesses experiencing seasonal fluctuations in revenue greatly benefit from CC/OD loans. They can draw funds during peak seasons to meet increased demands and repay the loan during off-peak periods, ensuring smooth operations throughout the year.
Why Choose Jessica Fincorp for Your CC/OD Loans?
Expertise: Jessica Fincorp, with years of experience in the financial sector, brings unmatched knowledge and expertise to help you navigate the complexities of CC/OD loans. Our team works closely with you to understand your business needs and provides tailored solutions that align with your specific requirements.
Competitive Terms: We provide attractive interest rates, flexible repayment options, and transparent terms to ensure you get the best deal for your CC/OD loan requirements.
Fast Approval Process: We at Jessica Fincorp understand how critical timely funding is in managing working capital needs. Our streamlined approval process ensures fast turnarounds so that you can access your CC/OD loan funds when you need them the most.
Dedicated Support Dedicated support is dedicated to providing every customer with step-by-step help at every level of the CC/OD loan process. With us, whether you need guidance in eligibility criteria or documentation or other repayment options, we are committed to providing you with the support to make informed decisions.
What is Cash Credit and how business can benefit from it?
Cash credit (CC) and overdraft (OD) loans are popular forms of short-term funding that businesses can use to meet their working capital requirements. Financial institutions, such as banks, provide CC/OD loans based on the company’s credit history and financial stability.
So, how do these loans work? With a CC/OD loan, businesses gain access to funds that can be used for various operational needs. Whether it’s expanding operations, purchasing new equipment, buying raw materials, hiring staff, or consolidating debt, CC/OD loans offer the financial flexibility required to manage day-to-day business demands effectively.
To avail of a CC/OD loan, businesses typically need to offer their stocks and receivables as security. The loan amount can usually be repaid over a period of up to 12 months, with the option to renew the term based on mutual agreement with the lender. However, the borrowing limit is restricted to the sanctioned amount, ensuring businesses stay within their approved credit range. Additionally, lenders often require collateral or other forms of security to approve a CC/OD loan, safeguarding their financial interests while supporting the borrower’s liquidity needs.
What Are The Feature Of Cash Credit
Eligibility Criteria for OD/CC LIMITS
Lenders usually set their business loan eligibility criteria based on the following factors:
- Age: 21 years at the time of loan application and 65 years at the time of loan maturity (may vary across lenders)
- Minimum Business Vintage: 3 years (may be 5 years for some lenders)
- Minimum Business Turnover: Rs 50 Lakhs to more than Rs 250 crore
- Credit Score: 700 or above (some lenders may offer business loans to applicants having lower credit scores)
- Minimum Income: Rs 3.5 lakh P.A.
- Eligible Entities: MSMEs, Proprietors, Limited Liability Partnership firms, Private Limited Companies, self-employed individuals, self-employed professionals (doctors, CA, CS, architect, etc.) individual corporations, etc.
Documents Required for OD/CD LIMITS
- ID Proof: Aadhar Card, Passport, Voter ID Driving License.
- Address Proof: Telephone/electricity bill.
- Ownership proof of residence or office
- Business continuity proof
- Business registration proof
- Bank statement for last 12 months
- Latest ITR along with income computation, B/S, P&L account for last 2 years certified by a CA
EMI LOAN CALCULATOR
EMI Calculator Service
Our EMI Calculator Service is a user-friendly tool designed to help clients easily estimate their Equated Monthly Installments (EMIs) for loans. With this service, clients can input key loan details such as loan amount, interest rate, and tenure, and instantly calculate their monthly repayment obligations. Whether you’re planning to take out a home loan, car loan, or personal loan, our EMI Calculator Service provides quick and accurate estimates, empowering clients to make informed financial decisions with ease.
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FAQs on OD/CD LIMITS with Jessicafincorp :
We offer the Cash Credit and Overdraft facility to resident individuals (with business
registration), proprietorship firms, partnership firms, LLP, Pvt. Ltd. companies and
unlisted public companies.
We offer competitive interest rates for our loan facilities. The interest for each loan is
determined based on assessment of your business profile, past track record, financial
records, loan amount required and tenure of loan.
Interest is charged only on the amount utilized and not on the entire sanctioned limit.
Collateral is required against the facility as follows:
a. Overdraft – Only property collateral is required.
b. Cash Credit – Primary security of stock and book debts required along with
property collateral.
get in touch
Do not hesitate to reach out. Just fill in the contact form here and we’ll be sure to reply as soon as possible.
Message us
info@jessicafincorp.com
+91 7290070441
+91 8178985424
Visit our office
Pillar Number 710, B-6/2, 1st Floor, Uttam Nagar, Delhi, 110059
