Four differences between overdraft and cash credit:
1. Bank loan/cash credit can be given to any person/firm/business, while bank facility is given only to current account holders.
2. In cash credit, the sanctioned loan amount is credited in a seperate account opened, whereas, in bank overdraft, no such seperate account is required to be opened.
3. For cash credit, it is essential to offer tangible assets as security, whereas in bank overdraft, this facility is granted without any security.
4. The ROI in cash credit is higher than a bank overdraft.
