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Guide

Working Capital Loans & CC Limits

Cash credit, overdraft and drawing power.

By Nishit Kumar, Founder & Editor
Updated 17 August 2026

Your numbers

₹5 Cr
₹1 L₹5,00,00,000₹1 Cr
060365
045365
030365
030%90
Working capital required
₹96,57,534
  • Receivables53%
  • Inventory28%
  • Payables (offset)19%
Cash conversion cycle
75 days
Receivables locked
₹82,19,178
Inventory locked
₹43,15,068
Less: supplier credit
₹28,76,712
Suggested CC limit (75%)
₹72,43,151

What this means.Every 10 days you cut from receivables frees roughly ₹13,69,863 of cash — usually cheaper and faster than raising a loan. Banks typically sanction a cash credit limit at 20–25% of turnover, adjusted for this cycle.

Questions

Is this small business information specific to India?

Yes. Everything on Credsir is written for Indian regulation, Indian tax law and Indian products — RBI rules, IRDAI norms, SEBI regulation and the current financial year’s income tax provisions.

How often is this page updated?

Rate tables are refreshed weekly, and immediately after an RBI policy change or a Budget announcement. Every figure on the page carries the date it was captured and a link to its source, so you can always see how current it is.

Does Credsir get paid to rank products here?

No. We earn from partner links and advertising, but rankings come from a published scoring formula that runs identically on every product, whether we earn from it or not. Products we make nothing from appear in these lists whenever they win on the numbers.

Are these the rates I will actually be offered?

Advertised rates are the best case, reserved for applicants with a high credit score, stable income and a favourable profile. Your offer depends on your credit score, employer, income and existing obligations. Treat published rates as the floor, not the quote.

Related reading

Worth knowing.Rates, fees and terms change frequently and vary by applicant. Everything here is general information, not personalised advice. Confirm the current terms directly with the institution before you apply. How we research and rate.