Clarification

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2012 CAN ANY TELL ME WHAT IS THE DIFF BETWEEN BANK OVERDRAFT AND CASH CREDIT.

Hemant Kumar

Hemant Kumar (Expert)
Follow

01 December 2012 The difference between cash credit and overdraft is that while under cash credit the security is inventory of the company while under overdraft security is generally the fixed assets of the company. Both cash credit and overdraft are operating accounts through which a borrower if he or she desire can withdraw funds as and when needed up to the credit limit given by the banker to him or her.