REVOLVING WORKING CAPITAL FINANCE

Cash Credit Loan 2026 Eligibility, Interest Rates & CC Facility

A revolving working capital credit line secured against stock and debtors, understand how a Cash Credit Loan works and compare CC facilities from 30+ banks on PaisaOne.

Credit Limit
₹1 Lakh to ₹25 Cr+
Interest Charge
On Utilized Amount Only
Security
Stock & Book Debts
Tenure
1 Year (Renewable)
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Cash Credit Loan 2026

Key Features & Benefits of Cash Credit

Pay Interest Only on Usage

Interest is computed on daily closing balance, saving massive costs during liquidity peaks.

Revolving Flexibility

Draw and repay funds as many times as needed within your sanctioned Drawing Power.

CGTMSE Collateral-Free Cover

MSME borrowers can obtain cash credit limits up to ₹5 crore without mortgaging property.

Seamless Renewal

Annual renewal based on regular stock audits and debtor statements keeps working capital intact.

Trusted Partners

Top Lenders Offering Cash Credit Loan 2026s

SBI CC Facility
HDFC Working Capital
BOB Cash Credit
PNB CC
ICICI Business CC
Axis Working Capital
SBI CC Facility
HDFC Working Capital
BOB Cash Credit
PNB CC
ICICI Business CC
Axis Working Capital

Cash Credit Loan 2026 – Key Features

Limit Amount

₹1 Lakh to ₹25 Crore+

Interest Rate

9.00% to 15.00% p.a.

Security Basis

Hypothecation of Stock & Debtors

Facility Type

Revolving Line of Credit

01
Before applying

Eligibility Criteria

Make sure your business meets these basic requirements.

  • Sole proprietorship, partnership, LLP, or private limited company
  • Minimum 1-2 years of operational history with verifiable turnover
  • Annual turnover of ₹10 lakh to ₹25 lakh minimum
  • CIBIL score of 700+ (650+ for select lenders)
  • Verifiable current inventory and trade receivables for Drawing Power
Eligibility Criteria
02
Keep ready

Documents Required

Keep these documents handy to speed up your application.

  • Aadhaar & PAN Card (Proprietor / Partners / Directors)
  • Business Registration Proof & Shop Act Licence
  • GST Registration Certificate & 12-Month GST Returns
  • Current Stock Statement & Aged Debtors/Creditors List
  • Audited Financial Statements (Last 2-3 years)
  • Bank Account Statements (Last 12 months, Current Account)
Documents Required

How It Works?

1

Compute DP

Calculate Drawing Power based on current stock and receivables minus creditors.

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2

Submit Statements

Provide audited financials, 12-month GST returns, and stock audit report.

3

Bank Inspection

Credit officer conducts business and stock verification before limit sanction.

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4

Sub-Account Activation

CC limit is linked directly to your current account for instant drawdown.

Compare Cash Credit & Working Capital Limits from 30+ Banks

Lowest Spreads
CGTMSE Backing Available
Fast Digital Processing
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Frequently Asked Questions

Clear answers to common questions about cash credit loan 2026

Most banks require a minimum annual turnover of ₹10 lakh–₹25 lakh, though this varies by lender and CC limit sought. Higher limits require documented turnover supported by GST returns, bank statements, and audited financials. Some NBFCs offer CC-like revolving credit with lower turnover thresholds.

Yes. SBI, HDFC Bank, Bank of Baroda, Axis Bank, and several other banks allow online CC applications through their business banking portals. Some FinTech platforms and NBFCs also offer digital revolving credit lines for small businesses based on GST and banking data.

Key documents include PAN and Aadhaar, business registration proof, GST registration and returns (12 months), audited financials (2–3 years), ITR, bank statements (12 months), and a current stock and debtors statement. Collateral property documents are required if the CC is not covered under CGTMSE.

Approval timelines vary by lender. PSBs typically take 15–30 working days after complete document submission and business visit. Private banks and NBFCs can process in 7–15 working days. Digital CC products from FinTech platforms may sanction pre-approved limits within 2–5 working days for eligible businesses.

Yes. Banks routinely sanction both a CC facility (for working capital) and a term loan (for capital expenditure) to the same borrower under a combined credit facility package. Both are assessed together as part of the total credit exposure of the business.

Drawing beyond the sanctioned CC limit or Drawing Power results in an 'excess' in the account, which most banks flag immediately. The bank may charge a penal interest rate (typically 2%–3% above the CC rate) on the excess amount and may freeze further drawings until the excess is cleared or the limit is formally enhanced.