What Is MSME OD/CC?

MSME OD (Overdraft) and CC (Cash Credit) are financial products designed to help Micro, Small, and Medium Enterprises (MSMEs) manage their working capital needs. An overdraft facility allows businesses to withdraw more money than they have in their account, up to a pre-approved limit. Cash credit is a short-term loan given to businesses to finance their day-to-day operations.

Key Facts about MSME OD/CC

Flexible Financing: MSME OD/CC facilities provide flexible access to funds, allowing businesses to manage cash flow effectively.

Interest on Usage: Interest is charged only on the amount utilized, not on the entire credit limit.

Renewable Facility: These facilities are typically renewable annually, subject to the business's performance.

MSME OD/CC Eligibility Criteria

Business Track Record: A minimum of 1-2 years of business history is generally required.

Financial Stability: Lenders assess the financial health and creditworthiness of the business.