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What is difference between cash credit and overdraft

Posted by Shubham Kesarwani 5 years, 1 month ago

CBSE > Class 11 > Business Studies

1 answers

Sia ? 5 years, 1 month ago

<th>CASH CREDIT</th> <th>OVERDRAFT</th>

Cash credit is a type of short term loan provided to companies to fulfill their working capital requirement.	Overdraft is a facility given by the bank to companies, to withdraw money "more" than the balance available in their respective accounts.
Pledge or hypothecation of inventory.	Assets like financial instrument and property.
Cash Credit Account	Current Account

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