Overdraft vs. Cash Credit

What is the exact difference between Overdraft facility and Cash Credit facility?

Replies (2)

Overdraft facility is normally against the fixed deposit . It  will have repayment schedule also.

In case of cash credit facility , the facility will normally be against stock or goods in transit.

In case of export orders overdraft facility is also granted against orders also.

overdraft facility allows an account holder to withdraw in excess of the account balance maintained by the account holder. This can be seen as a the ground of overdraft facility.

Cash credit makes a provision for credit by transferring the sanctioned amount of loan into an account, from wich the borrower can withdraw as per his conveniance.

You can distinguishe between the two on several other grounds, but this remains fundamental of all.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details