Cash Credit

byPaytm Editorial TeamLast Updated: November 14, 2025

Meaning

Cash Credit is a short-term loan provided by a bank to businesses to meet working capital needs.

How It Works

The bank sets a credit limit, and the business can borrow money as needed within that limit. Interest is charged only on the amount used, not the full limit.

Example

If a business has a ₹5 lakh limit and uses ₹2 lakh, interest applies only to ₹2 lakh.

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.

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