How do banks charge interest on cash credit account? for eg. my limit is 5 lacs and i utilse this amount for say 20 days will they charge me for the entire month or 20 days?in plain words i withdraw the entire 5 lacs on the 1 january and deposit full on 20 january how do they charge me?
In Cash Credit the interest is charged on the withdrawal amount and not the limit amount
Here the interest will be charged for 20 days for the actual amount withdrawn.....
Thank you Sir for your promt reply. it will definitely help in my respective field.
My Pleasure ...........
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
