28 January 2009
Cash Credit and Overdraft, both fulfill the requirement of Working Capital of the borrowers. However, Cash Credit is for specific use of limit for stock of material or book debts generally for which the limit is sanctioned and the borrower is supposed to furnish the list of these items on periodic basis while the OD limit is used in business not for a specific purpose and no periodic returns are to be submitted.
08 February 2009
In case of Cash Credit, primary securities are Stock-In-Trade and Books Debts and in case of OD it can be anything other than stock and book debts.
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