It is a short term loan provided to companies to fulfill their working capital needs. Cash credit account is the primary method in which banks lend money against the security of commodities and debt. This account runs like a current account accept the fact that money withdrawn from it is not restricted to the amount deposited in the account. It is an arrangement under which a customer of a bank or financial institution is allowed an advance up to certain limit against credit granted by the bank. This means a loan may be granted say for Rs. 1 Lac, however the customer / borrower of the loan may take the amount of loan to the extent required by him but not exceeding the limit of Rs. 1 Lac. The loan is suitable for meeting working capital needs.