Difference between OD and CC for bank loan

833 views 2 replies
1.what is the difference between OD and CC loan for bank.
2.a business person OD or CC loan received from bank benefit
Replies (2)
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CC is based on amount withdrawn OD based on amount used etcetera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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