CC Limit vs Home Loan in Delhi: OD Limit, Loan Against Property & Eligibility Explained

1. Introduction – The Confusion Between CC Limit & Home Loan

In today’s financial world, borrowers often get confused between different types of credit facilities. One common confusion is around the term “CC Limit for Home Loan.” Many people assume that a Cash Credit (CC) facility can be used to purchase a house, but that is not correct.

A CC Limit is primarily designed for business working capital, whereas a Home Loan is a completely separate product meant for purchasing property. For borrowers in Delhi, it is important to understand the difference so that they can choose the right financing option.

2. What is CC Limit & Where is It Actually Used?

• CC stands for Cash Credit Limit.
  
  
• It is a revolving credit facility that banks and NBFCs usually provide to businesses.
  
  
• Borrowers are sanctioned a certain limit, for example ?20 lakh, from which they can withdraw funds as needed.
  
  
• Interest is charged only on the amount withdrawn, not on the entire sanctioned limit.
  
  

In short, a CC Limit is not meant for buying a home. It is designed to support business cash flow requirements.

3. Can CC Limit Be Used for Home Loan?

The straightforward answer is No. You cannot use a CC Limit to directly purchase property. However, many people confuse CC with home loans because both may involve collateral in certain cases.

This is where another concept comes in: the unsecured OD limit for home loan, which is essentially an overdraft facility but still not the same as a home loan.

4. OD Limit Against Property – A Better Alternative

If you want to borrow funds against your property, then an Overdraft (OD) Limit Against Property is a much better option.

• It is a secured facility offered against your residential or commercial property.
  
  
• Just like CC, it has a revolving feature – you can withdraw, repay, and withdraw again.
  
  
• Interest is charged only on the outstanding balance.
  
  
• It is especially useful for self-employed professionals and business owners.
  
  

5. CC vs OD vs Home Loan – Complete Comparison

Also Read Business Loans in Delhi

6. When to Choose a Home Loan Instead?

If your goal is to purchase a house, then a Home Loan is always the most suitable option.

• Long repayment tenure (up to 30 years)
  
  
• Affordable EMIs
  
  
• Lowest interest rates among loan types
  
  
• Tax benefits under Section 24(b) and 80C
  
  

For Delhi-based applicants, some of the most popular products include:

• Affordable home loan plans in Delhi
  
  
• Instant home loan in Delhi with quick approvals

7. Other Useful Loan Options in Delhi

Apart from CC and OD, there are other financing options available:

• Loan Against Property in Delhi – best for education, medical needs, business expansion, or marriage expenses.
  
  
• Unsecured OD – provides quick liquidity but comes with higher interest.
  
  
• Personal Loan – useful for short-term requirements with smaller loan amounts.
  
  

8. Eligibility & Documents (For Delhi Applicants)

Eligibility:

• Age: 21–65 years
  
  
• Stable source of income (salaried or self-employed)
  
  
• Minimum CIBIL score: 650+
  
  
• Clear ownership of property
  
  

Documents Required:

• PAN & Aadhaar Card
  
  
• Recent passport-size photographs
  
  
• Income proof (salary slips, ITR, or bank statements)
  
  
• Property ownership documents
  
  

9. Final Thoughts – What’s Best for You?

• A CC Limit is designed for businesses to manage working capital.
  
  
• An OD Limit Against Property is a flexible secured facility suitable for those who already own property.
  
  
• A Home Loan remains the best and most affordable option if your goal is to buy a house.
  
  

For borrowers in Delhi, the best approach is to clearly identify your financial need. If your requirement is home purchase, go for a home loan. If you need short-term funds or business capital, consider an OD limit.

Trusted platforms like Loans Wala, a loan finance company in Delhi, can guide you through the process, compare plans, and help you get approvals faster

10. FAQ Section

Q1. Can I use my CC limit for home loan?
No, CC limit is meant for business purposes and cannot be used to purchase property.

Q2. What is unsecured OD limit for home loan?
It is a credit line offered without collateral, but usually comes at a higher interest cost.

Q3. Is OD limit better than home loan?
OD limit is better for short-term liquidity, while home loans are the best option for buying property.

Q4. What is the difference between CC and OD?
CC is primarily for business cash credit, while OD can also be offered against property as a secured facility.

Q5. What is the minimum income required for a home loan in Delhi?
Most banks require a monthly income of around ?25,000–?30,000, depending on the lender’s policy.