Quick Answer: What Is CC Account In HDFC?

What is CC account?

A Cash Credit (CC) is a short-term source of financing for a company.

In other words, a cash credit is a short-term loan.

It enables a company to withdraw money from a bank account without keeping a credit balance.

The account is limited to only borrowing up to the borrowing limit.

Also, interest..

What is the difference between CC and OD account?

Cash Credit (CC) is a short-term loan offered to businesses to meet their working capital requirements, whereas Overdraft facility is funding offered by banks to individuals or companies to withdraw money from the banks even if their account balance is low, zero or below.

What is cc limit?

Cash credit limit or CC limit is a kind of current account with cheque book facility. … CC limit holders offers stock and debtors as primary security to the bank. A CC limit or cash credit limit allows you to withdraw money or issue cheque up to the approved CC limit, even if there is no balance in the account.

Can we withdraw cash from CC account?

Further relaxing cash withdrawal norms, the Reserve Bank today said overdraft and cash credit account holders can now withdraw up to Rs 50,000 in a week. Earlier, current account holders were allowed to withdraw up to Rs 50,000 in cash, in a week.

What documents are required for cash credit?

KYC Documents.Duly filled in application form signed by the customer.Relevant financial documents.Bank account statement of last 6 months.PAN card/Form 60.Business Proof.

How do I convert my loans to CC?

CC loan can’t be converted into term loan which please note. You have one option you go to bank and discuss with them that you wants to repay the CC amount via term loan so they may transfer the amount to repay CC loan if agreed be as it will be a fresh loan.

How do I get a CC account?

The applicant must submit the following list of documents to avail a cash credit loan:Financial statements certified by a CA.Bank account statement for at least 6 months.IT returns for at least a year.Loan repayment record (if applicable)Proof of collateral.Other relevant documents requested by the bank.

How does CC account work?

A cash credit loan allows a company to withdraw money from a bank account. You can withdraw as many times, but up to its withdrawal limit. The borrowing limit is decided on the basis of the applicant’s credit history or creditworthiness, which is based on the company’s structure of the current assets and liability.

How is CC interest calculated?

General formula to calculate interest on credit card: (Number of days are counted from the date of transaction made x Entire outstanding amount x Interest rate per month x 12 month)/365.

How can I get OD loan?

You can get an overdraft limit up to 2-3 times of your salary but that may vary from bank to bank. To avail such an overdraft you need to have a salary account with the said bank. Such facility is also called a short-term loan facility.

What is margin in cc account?

Margin is the owner’s contribution to the business. In most of the cases, a margin on the stock is 25% and for book debts 40% of net debtors which may vary from bank to bank and industry to industry. Illustration: ABC company enjoying CC limit of Rs.

What is pay in slip?

Pay-in slips encourage the sorting of cash and coins, are filled in and signed by the person who deposited the money, and some tear off from a record that is also filled in by the depositor. Deposit slips are also called deposit tickets and come in a variety of designs.