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Questions
What is Cash Credit?
What do you mean by cash credit?
What is meant by ‘Cash Credit’?
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Solution
Banks offer cash credit, a short-term loan against current assets like bonds, stocks, and shares. For cash credit, the bank opens a second current account in the borrower’s name, allowing them to withdraw the borrowed money as needed. The bank only charges interest on the amount withdrawn, not the whole amount sanctioned.
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