Key features of a cash credit limit include:

1. Limit: The bank sets a credit limit based on the business’s financial health, creditworthiness, and working capital requirements. The business can withdraw funds up to this limit.
2. Interest: Interest is charged only on the amount withdrawn, not on the entire credit limit. The rate is usually lower than that of unsecured loans, as the credit is secured against the business's assets, like inventory and/or receivables.
3. Repayment: Cash credit is a revolving facility, meaning that as the business repays the amount borrowed, it becomes available for use again. The repayment terms are typically flexible, with interest paid on the outstanding balance.
4. Collateral: To secure the credit, businesses are often required to pledge assets, such as inventory, receivables, or property.
5. Usage: Cash credit limits are ideal for businesses facing fluctuations in cash flow, as they provide quick access to funds without needing to apply for a new loan every time.

Cash credit limits help businesses maintain liquidity, allowing them to meet immediate financial needs. However, it's important for businesses to manage this facility responsibly to avoid overuse and high-interest charges.