What Is The Difference Between A Cash Credit A/c And A Current A/c? Which Is Better For A Businessman, And How Both Of Them Differ From A Schematic Loan?

A current A/c is held at any institution like bank to provide the funds on request. These  accounts provide convenience to the client. They don't charge any interest to the client. Customer can withdraw and deposit any amount of money any number of times depending on the availability of money.A cash credit A/c is an A/c by which a person is allowed money in advance up to a certain limit against credit charged by the bank or financial institution.For businessmen who need loan for working capital, credit a/c is the best option. Whereas those who need loan for purchasing plant, machinery and fixed assets, term loan is better.

Add Comment

Report