What is cc account in bank

A Cash Credit (CC) account is a short-term borrowing facility provided by banks to businesses and entrepreneurs to meet their working capital requirements. It allows customers to withdraw money up to a sanctioned limit, even if there is no credit balance in the account. Key features include:

• Interest is charged only on the amount utilized, not on the total sanctioned limit.
• The account is typically secured against current assets like inventory, stock, or receivables.
• It functions similarly to a current account with continuous withdrawal and deposit options.