• Secured OD/CC:

Given against security like stock, receivables, or property; used by businesses for working capital.

• Unsecured OD:

Granted without collateral, based on financial strength and credit history of the borrower.

• Temporary OD (TOD):

Short-term facility for urgent cash needs, usually for a few days or weeks.

• OD Against Fixed Deposit (LAD):

Overdraft allowed against own fixed deposit; limit up to 75–90% of deposit value.

• Specific Purpose OD (Salary OD):

Sanctioned for particular needs, such as salary overdrafts for individuals or project-specific ODs for firms.

• Cash Credit Against Stock and Debtors:

Working capital facility against hypothecation of stock and book debts; drawing power based on asset value.

• Receivable-backed CC / Bill Discounting:

Cash credit provided against accepted bills or invoices due from customers.

Below is the standard documentation banks require for renewal of OD/CC limits (may vary slightly by bank and facility type):

A. Basic Business Documents

• Latest KYC documents (PAN, Aadhaar, GST registration, etc.)
• Partnership Deed / MOA / AOA / Board Resolution (if applicable)
• Trade License / Udyam Registration / MSME Certificate

B. Financial Documents

• Audited Balance Sheets – last 2 or 3 financial years
• Provisional financials for the current year (if applicable)
• Projected financials for the next year
• Income Tax Returns of the firm/proprietor/partners/directors – last 2 years
• GST Returns (GSTR-1, GSTR-3B) – last 6–12 months
• Bank statements – last 6–12 months for all business accounts
• Stock statements – monthly/quarterly for working capital limits
• Debtors/Creditors statements with ageing analysis

C. Security / Collateral Documents

• Valuation report of property / asset (if collateralized)
• Legal opinion or title deed copies (if mortgaged)
• Insurance copy of stock/building/assets
• Renewed hypothecation / mortgage agreement

D. Operational Documents

• Sanction letter of existing facility
• Renewal request letter / Application form
• Review note or performance summary (if applicable)
• Declaration of no default / NOC from other banks (if multiple limits exist)

To qualify for OD/CC renewal, the borrower must typically:

• Maintain satisfactory account conduct — regular turnover, within sanctioned limits.
• Submit all required financial documents before expiry.
• No overdue interest or irregularities in account operation.
• Business continuity — ongoing operations and profitability.
• Compliance with KYC, GST, and regulatory norms.

• Flexible fund usage:

Borrower can withdraw funds as needed within the sanctioned limit.

• Interest on used amount only

Interest is charged only on the amount actually utilized, not the full limit.

• Continuous availability

Funds can be reused after repayment, offering ongoing liquidity.

• Helps manage cash flow

Ideal for meeting short-term working capital or operational needs.

• Quick access to funds

Easy withdrawal without fresh loan processing each time.

• Improves business credibility

Regular use and timely repayment enhance credit profile.

• Reduces borrowing cost

More economical than term loans for fluctuating cash requirements.

• Supports growth

Ensures smooth operations even during temporary financial shortages.