An Overdraft (OD) and Cash Credit (CC) loan is a type of working capital financing designed to help businesses manage short-term financial requirements and maintain a healthy cash flow. Under this facility, a credit limit is sanctioned based on the financial profile and eligibility of the business. Interest is generally calculated only on the amount utilized within the sanctioned limit, making it a flexible financing option for meeting operational expenses such as inventory purchases, supplier payments, salaries, and other day-to-day business needs. This information is provided for educational purposes only.