Overdue
This query is : Resolved
15 December 2011
When does a cash credit account becomes overdue? also if the balances in the account for a month is above cc limit do we need to bring to notice of the management.
15 December 2011
CC a/c becomes overdue in two cases:
1) when full amount of Interest due is not paid &
2) when excess CC credit limit utilised in not settled in due period for which cc limit is granted.
EG. If cc limit is Rs. 1 Lac so:
1) Int levied at month end is not repaid by cash credit to that a/c then CC a/c becomes overdue
2)If outstanding bal is above 1 lac & amount utilised in excess of 1 lac is not repaid in credit period granted then a/c becomes overdue.
Balance in the account for a month above cc limit is need to be bring to management notice to settle it through cash credit to avoid penalty.
1) when full amount of Interest due is not paid &
2) when excess CC credit limit utilised in not settled in due period for which cc limit is granted.
EG. If cc limit is Rs. 1 Lac so:
1) Int levied at month end is not repaid by cash credit to that a/c then CC a/c becomes overdue
2)If outstanding bal is above 1 lac & amount utilised in excess of 1 lac is not repaid in credit period granted then a/c becomes overdue.
Balance in the account for a month above cc limit is need to be bring to management notice to settle it through cash credit to avoid penalty.
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