Clarification
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 November 2012
CAN ANY TELL ME WHAT IS THE DIFF BETWEEN BANK OVERDRAFT AND CASH CREDIT.
Hemant Kumar
(Expert)
01 December 2012
The difference between cash credit and overdraft is that while under cash credit the security is inventory of the company while under overdraft security is generally the fixed assets of the company. Both cash credit and overdraft are operating accounts through which a borrower if he or she desire can withdraw funds as and when needed up to the credit limit given by the banker to him or her.
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