CA final intern
47 Points
Joined October 2009
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.