Difference Between An Overdraft And Cash Credit

Thursday 14th of April 2011 | By: Administrator | Views: 5558 | Comments: 0 | Rating: 3 Star Content3 Star Content3 Star Content3 Star Content3 Star Content |  


Difference between an Overdraft and Cash Credit
The main points of difference between an overdraft and cash credit are as follows.

(1) Overdraft is a temporary arrangement and is usually for a very short period. The cash credit on the other hand is a borrowing on a comparatively long term and on regular basis.

(2) Overdraft facilities are allowed in current account only. Cash credit needs opening a separate cash credit account.

(3) The rate of interest on overdraft is relatively lower but on cash credit it is higher.

Rate this Page:
  • Currently 0/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
Overall Ratings: 0 Stars - 1 Vote(s)
  • Add New Comment


      Please enter your name

      Please enter your email address

      Please enter your web address (Optional)

      Please enter your highly valued comments
    Enter Code
      Human verification code (Required)
  • Your Name

     (26th of May 2015)

    No comments have been posted on this page yet..... Be the first one to share your opinion!