New 55% Off on All Courses - Enroll Now! Click Here

    Question

    What is the major difference between a Cash Credit (CC)

    and an Over Draft (OD) facility?
    A Only Cash Withdrawals are permitted in CC. Correct Answer Incorrect Answer
    B CC loans have to be unsecured always Correct Answer Incorrect Answer
    C In OD, the beneficiary can withdraw even when the account balance is 0 Correct Answer Incorrect Answer
    D OD can’t be taken by Individuals. Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Cash Credit (CC) is a short-term loan offered to self-employed customers and businesses to meet their working capital requirements, whereas an Overdraft facility is credit funding offered by banks to individuals and companies to withdraw money from the banks in which they have accounts, even if their account balance is low, zero or below.

    Practice Next

    Relevant for Exams: