In India, OD (Overdraft) and CC (Cash Credit) are two ways to borrow money from banks. Here’s a simple explanation:

1. Overdraft (OD):

   • What It Is: It lets you take out more money than you have in your bank account, up to a certain limit.
   • Example: If your account balance is ₹1,000 and your overdraft limit is ₹5,000, you can withdraw up to ₹6,000.
   • Interest: You pay interest only on the amount you overdraw, and the rate is usually higher than a regular loan.
   • Use: It’s handy for covering unexpected expenses or managing short-term cash needs.

2. Cash Credit (CC):

   • What It Is: This is a type of short-term loan, mostly for businesses. It allows you to borrow money up to a limit and use it as needed.
   • Example: A business might have a cash credit limit of ₹1 lakh. They can withdraw ₹50,000 now, pay it back later, and borrow again.
   • Interest: Interest is charged only on the amount you use, not the full limit.
   • Use: Businesses use cash credit to buy inventory or manage day-to-day expenses.

In summary, OD is useful for individuals needing quick cash, while CC is designed for businesses to manage their finances effectively.