1. Purpose: OD/CC loans provide flexible financing for short-term working capital needs and cash flow management for businesses.
2. Loan Structure: OD offers a limit against which businesses can overdraw their current account, while CC provides a revolving line of credit based on the value of assets like inventory or receivables.
3. Repayment: Typically, businesses repay the borrowed amount as per their cash flow, with interest calculated on the amount utilized.
4. Security: Collateral may be required, such as inventory, receivables, or property, depending on the lender’s policies.
5. Interest rates: Interest rates may vary, with some linked to market benchmarks like the prime rate.
6. Qualification criteria: Evaluation is based on factors such as business performance, credit history, and collateral offered.
7. Utilization: Businesses can use OD/CC facilities as needed, allowing for flexibility in managing day-to-day operations and unforeseen expenses.
8. Fees: Costs may include processing fees, renewal charges, and interest on the amount utilized.

OD/CC loans offer businesses the flexibility to manage their cash flow effectively and meet short-term financial obligations, but it’s essential to understand terms, costs, and repayment obligations before availing them.