OCC – Open Cash Credit
“Open cash credit” account allows business owners to avail credit facility from their bank, without a need to formally apply for a loan. The account holder may utilize funds up to a sanctioned limit.
The bank charges some interest on the money used by the account holder. The OCC account is best suited to small & medium enterprises (SMEs).
Difference between OCC and OD account
OCC is the “cash credit” facility which is provided by the bank in which an account holder can regularly utilize funds up to a pre-approved limit. Whereas in OD account, the required money has to be overdrawn from the account, in case the money required is more than the account balance.