Cash Credit / Overdraft Daily Interest Calculator
What is my actual daily and monthly interest expense on my Cash Credit / Overdraft facility under commercial bank daily product methods?
Financial Inputs
Total credit limit sanctioned by the lender.
Average daily utilized/borrowed balance in the CC account.
Base rate or MCLR/repo spread charged on drawn funds.
Number of calendar days in the interest billing month.
Bank charge levied on unutilized limit if average drawal is below 50%.
Annual bank processing / inspection / renewal fee.
Monthly Net Interest Expense
For an average daily drawn balance of ₹350 Lakh (70% of your ₹500L limit), your daily interest cost is ₹9829 and monthly interest is ₹294.86 Thousand.
All-In Monthly Facility Cost
3,09,446
Daily Interest Accrual
9,829
Limit Utilization Rate
70
Key Financial Takeaways
- For an average daily drawn balance of ₹350 Lakh (70% of your ₹500L limit), your daily interest cost is ₹9829 and monthly interest is ₹294.86 Thousand.
- Total monthly cost of maintaining the credit facility (including interest, renewal charges, and commitment fees) is ₹309.45 Thousand.
- The effective annualized all-in borrowing cost on drawn funds is 10.75% p.a. (compared to base interest of 10.25%).
Frequently Asked Questions
How is Cash Credit interest calculated by Indian commercial banks?
Unlike term debt EMIs, Cash Credit interest is calculated strictly on the daily closing debit balance using the "daily product method". Interest accrues daily and is debited to the CC account on the final calendar day of each month.
What is a commitment fee on Cash Credit accounts?
Banks reserve capital for the full sanctioned limit. If an enterprise draws less than a specified minimum percentage (typically 50%), the bank levies an unutilized commitment fee (usually 0.25% to 0.50% p.a.) on the unused portion.
Calculators on this platform provide indicative mathematical estimations based on industry-standard financial appraisal models (including Tandon Committee Method II, Nayak Turnover Method, and standard compound amortisation).
They do not constitute a formal facility sanction, credit commitment, or legal advisory from SME PAISA or any partner banking/NBFC institution. Final terms, interest margins, security stipulations, and credit sanctions remain strictly subject to formal credit appraisal, audited balance sheet verification, CMA Data assessment, and risk committee approval by institutional lenders.
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