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Cash Credit a/c vs overdraft A/c

sidharth shankar (Student) (154 Points)

25 April 2012

what is the major difference in a Cash Credit Account and Overdraft Account......???

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8 Replies

(Guest)

current account is just like SB a/c but for business people, but there wont be any limits regd no. of withdrawals.., Overdraft means its like a loan account, it will be opened on the basis of appropriate security, total withdrawal limit will be sanctioned on the day of opening, the account holder can withdraw or deposit amount whenever he want, major diff is Current account is a deposit account, Overdraft account is a loan account..

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sidharth shankar (Student) (154 Points)
Replied 25 April 2012

Its not that CC account is a deposit account...we get a limit in CC account also like in OD account....

(Guest)

Siddharthji, current account and CC a/c, both are different...

sidharth shankar (Student) (154 Points)
Replied 25 April 2012

oh sorry....actually i wanted to knw the difference in CC account and od account....

(Guest)

no need to say sorry...:-), check this link... it may help you.. /experts/difference-between-cc-and-od-172641.asp /experts/cash-credit-and-overdraft-118706.asp

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sahil (manager) (26 Points)
Replied 27 October 2012

Sab apne me lage hue hai pata sat ahai nahi bas repky kar do kuch bhi

anyway

Dear

cc a/c ,measn cash credit a/c

od a/c means overdraft a/c

cc a/c = cash credit limit Cash credit is a loan given against the security and also against the value of goods (Raw material, Finished goods or Stock in hand etc)

od a/c = Overdraft, on the other hand, is allowed against a host of other securities including financial instruments like shares, units of mutual funds, surrender value of LIC policy and debentures etc. Some overdrafts are even granted against the perceived "worth" of an individual. Such overdrafts are called clean overdrafts.

bye bye

1 Like

(Guest)

Sahilji.., I very well remember this thread, if the query and the title has been modified after my reply.., then I dont think its my fault..., question which was asked earlier.."whats the diff between current account and OD a/c.." and thanks for solving the query..:)