An unsecured OD or Cash Credit limit is intended for recurring business cash-flow needs, not as a substitute for every type of borrowing. The useful starting point is the operating cycle—how long cash is tied up in stock, suppliers and receivables.
Broad eligibility considerations
Turnover, profitability, banking conduct, GST/tax consistency, promoter credit profile, existing exposure and business vintage commonly influence the lender’s assessment.
Documents commonly requested
- Business KYC and registrations
- Recent bank statements
- GST returns and financial statements
- Existing loan/limit statements and receivable details
Final approval, pricing, security, scheme coverage and terms are decided by the relevant lender or institution after assessment.