Use of cash credit for payment of acquisition of car

Can C.C. taken on hypothecation of stock and book debts be used for payment to vendor to purchase a car. The car is used in the business of the borrower.

Similarly can the installment of unsecured loans, for business purpose, from NBFCs can be paid from the C.C. A/c.

Please suggest.

Replies (2)

You can use CC Account for purchasing Car or Paying the EMI but Never use short term borrowing to cover long term debt.

 

Jai Shree Ram!

Check out the relevant correspondence...i think cc cannot be used acqn of car

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