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Q.

What is the difference between CC(Cash Credit) & OD (Overdraft) A/c?

Tags: credit, money, education
Asked by Prabhjot, 11 Oct '09 11:41 am
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Answers (7)

 
1.

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.
Answered by Prakash Pachisia, 10 Jan '12 06:56 pm

 
  
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2.

Both are banking facility, you can make use of it..od - you can get against your deposit and assets..cc - you can get only on your assets.depends upon your requirement and your holdings (securities) you can get it from the bankers. another one is there called tod - temporary overdraft .you can get this with managers power for a day or two days
Answered by venkatesaldevarajan, 11 Oct '09 11:52 am

 
  
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3.

Cc is a permanent limit given by the bank and over draft is given for a particular period like 10 days 15 days or so and it is done in current a/c
Answered by babu rao, 11 Oct '09 11:57 am

 
  
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4.

C/C a/c is permanent & OD is temporarily
Answered by Satish Rohra, 11 Oct '09 11:45 am

 
  
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5.

Both are working capital finance.Overdraft is against paper securities i.e.Current Assets in the form of Receivables ,Bonds, Certificates,etc where as Cash Credit is against tangible securities i.e. Current Assets like Stock-in-Trade (also against receivables).
Source: Bardhan
Answered by LiluahCoOp BankLtd, 11 Jan '13 03:13 pm

 
  
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6.

CC means Loans against Stock....

OD means Loans for Business
Answered by Anand, 30 Apr '13 02:10 pm

 
  
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7.

OD stands for overdraft.To avail this you need not open a specific account for it.This is a facility which can be given on deposits.generally you can get this facility in current account.But in case of cc ie: cash credit it is a type of loan.You need to open a specific account for it.This type of loan is given on stocks maintained.
Answered by Pragnyabrat Swain, 04 Jan 07:41 pm

 
  
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