Over Draft / Cash Credit (OD/CC)
Boost your business cash flow with Overdraft & Cash Credit
At NIRAI Corporate Solutions, we understand the dynamic needs of businesses and the importance of seamless cash flow management. The overdraft and cash credit facilities are tailored to provide flexible, short-term financing to meet your working capital requirements. Whether it’s managing inventory, covering operational expenses, or addressing unforeseen financial needs, our solutions offer instant access to funds with interest charged only on the utilized amount. With NIRAI as your trusted partner, you can focus on growing your business while we ensure uninterrupted financial support.
Key Features of Overdraft / Cash Credit (OD/CC)
Flexible Financing
Pay Interest Only on Utilized Amount
Revolving Credit Facility
Quick Disbursal of funds
Secured and Unsecured Options
No Fixed Repayment Schedule
FAQ
Overdraft /
Cash Credit
What is an overdraft, and how does it work?
An overdraft is a financial facility that allows you to withdraw more money from your bank account than you currently have, up to a pre-approved limit. It acts like a short-term loan, where you only pay interest on the amount you use. This feature is ideal for managing temporary cash flow shortages or urgent financial needs.
What are the eligibility criteria for availing of an overdraft facility?
Eligibility criteria vary across financial institutions but generally include:
- Maintaining a current or savings account with the bank.
- A stable credit history and financial track record.
- Regular income or business turnover to demonstrate repayment capability.
- Providing collateral (if required) for secured overdrafts.
What is the interest rate on an overdraft, and how is it calculated?
The interest rate for an overdraft is typically higher than regular loans but is charged only on the amount utilized and for the duration of its use. It is usually calculated daily and debited at the end of the month or as per the bank’s policy. The rate depends on factors like the type of account, the creditworthiness of the borrower, and whether the overdraft is secured or unsecured.
