1.what is the difference between OD and CC loan for bank. 2.a business person OD or CC loan received from bank benefit
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Quick Summary
This discussion clarifies the distinctions between Overdraft (OD) and Cash Credit (CC) bank loans. CC is a short-term facility with lower interest rates, typically requiring a separate account, and is based on the amount withdrawn. OD, on the other hand, is a long-term loan with higher interest rates, often available through your current account, and is based on the amount utilised.
OD is long term where's as CC is short term loan rate of interest in CC is lower rate of interest in OD is higher in CC you need to open in separate account OD can open in current account CC is based on amount withdrawn OD based on amount used etcetera there's are many differences based on the purpose and nature again to answer your 2 question you have to elaborate more what the purpose of business loan means of what types of business what expand or its new to market it's credibility etc etc
Cc is cash credit limit which will be regular account. OD or over draft is provided above the regular limit to fulfill some necessary transaction if account holder already used all limit. it is upto some percentage of regular limit and very bank to bank. intrest on od is higher than regular intrest in cc limit .
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