Full Form of CCP

What is CCP?

Cash Credit (CC) is a short-term borrowing facility offered by banks to businesses, allowing them to withdraw funds up to a pre-sanctioned limit against the collateral of current assets such as inventory, raw materials, or book debts. In India, this form of working capital finance is widely used by small and medium enterprises, traders, and manufacturers to manage day-to-day operational expenses, seasonal demand spikes, or supply chain gaps. The facility is flexible – interest is charged only on the amount actually withdrawn, not on the entire limit, making it cost-effective for borrowers. Cash Credit accounts are typically reviewed annually by banks, and the limit is reassessed based on the borrower’s turnover, asset quality, and repayment track record. It is a staple topic in Indian banking and finance examinations, including those conducted by IBPS, RBI, and SBI, where questions often test understanding of differences between Cash Credit, Overdraft, and Term Loans. Understanding this product is crucial for aspirants seeking roles in bank credit management or branch banking operations.

CCP का फुल फॉर्म

Example

The textile mill relied on a ₹2 crore cash credit limit to finance bulk yarn purchases during the peak season.

CCP — frequently asked questions