diff between

OD is temporary loan from bank which is increase ur current liabilities and cash credit means reduced in ur current assets

Major difference is  due to the requirement of security/ collateral against loan. Cash credit is secured by hypothecation of existing current assets the company whereas bank OD is generally unsecured. Bank OD is extended to entities having good creditworthiness in the market.

VARUN SIR'S ANSWER CLEARLY POINTS OUT THE DIFFERENCE

Cash credits are agianst the hypotecation of stock and debtors and over draft may be secured or unsecured . The unsecured overdraft is the sanction to overdrawn the account without any security except the personal security and credit worthyness of the borrower. In case of secured overdraft , the borrowed money is secured against FDR, NSC etc.

- ca sudhir halakhandi

 thanks for good clarification

ok thanks for answering frnds but wht abt int and opening of a/c?like od cab be overdrawn and in case of cash credit wht is procedure?