Free CC Limit Calculator to estimate your cash credit eligibility based on turnover, current assets, and liabilities. Perfect for MSMEs and small businesses.
🖋 By Meenakshi – AZAD Architects, Barnala
CC Limit Calculator – Estimate Your Cash Credit Eligibility Online
💼 What is a CC (Cash Credit) Limit?
A Cash Credit (CC) limit is a short-term working capital loan facility provided by banks to businesses. It allows you to borrow funds up to a sanctioned limit to meet day-to-day operational expenses like purchasing raw materials, paying suppliers, or managing inventory.
Unlike term loans, you pay interest only on the amount utilized, not on the entire sanctioned limit.
🧮 What is a CC Limit Calculator?
A CC Limit Calculator is an online tool that helps you estimate:
✅ How much CC limit your business can get
✅ Approximate interest cost on utilization
✅ Eligible working capital based on turnover
It is especially useful for small businesses and MSMEs to plan their working capital requirements.
💡 How is CC Limit Calculated?
Banks generally calculate Cash Credit Limit based on:
1️⃣ Turnover Method (For MSMEs)
• CC Limit ≈ 20% to 25% of projected annual turnover
• Example: If your turnover = ₹1 Cr, CC limit may be ₹20–25 lakh
2️⃣ Working Capital Gap Method
• CC Limit = Current Assets – Current Liabilities
• Bank may finance 75% of working capital gap
3️⃣ Stock & Debtors Statement
• CC Limit = Value of stock + receivables – creditors margin
Since banks use different methods, an online CC limit calculator simplifies the estimation.
✅ Try Our Free CC Limit Calculator Online
👉 Enter your business turnover, current assets & liabilities – get an instant estimate of your CC limit!
Estimate your Cash Credit eligibility based on turnover & working capital
⚠️ This is an approximate calculation. Actual CC limit depends on bank policies & financial analysis.
💼 CC Limit Calculator
📊 Example Calculation
• Annual Turnover = ₹2 Cr
• Current Assets = ₹80 Lakh
• Current Liabilities = ₹40 Lakh
Working Capital Gap = ₹40 Lakh
Bank finances up to 75% of gap = ₹30 Lakh CC Limit
🔄 Benefits of Knowing Your CC Limit
✔ Helps you plan business cash flow
✔ Avoids unnecessary over-borrowing
✔ Gives a clear idea of eligible working capital finance
✔ Improves loan application preparation
⚠️ Important Points About CC Accounts
✅ Interest is charged only on utilized amount
✅ Regular submission of stock & debtor statements is required
✅ Banks may review CC limit annually
✅ Non-utilization may attract commitment charges
🌟 Conclusion
A CC Limit Calculator helps you quickly know how much working capital funding you may be eligible for. This makes it easier to approach banks confidently and plan your business finances better.
📌 Thank you!
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