20 December 2009
Regarding availability of limits from banks it depends upon the value of security and desired margin by bank. Generally banks provide 75% of limit of the asset hypothecated/pledged. On 25% of value of the assets; the banks do not finance which is known as margin. The logic behind is that the borrower should have some capacity to run the business and in case there is defaults in payment of interest they will be secured fully.
However; withdrawal facility from both the accounts are predetermined by the bank. In this sense both are same.
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