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50. LOAN
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CASH
CREDIT
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1.
Meaning
A
lumpsum amount is advanced for a period of one year or more
2.
Account
Separate
loan account is to be maintained by bank
3.
Borrowing Party
It is given to any party who fulfils
certain conditions.
4.
Interest Charged
It is charged on amount sanctioned whether
utilised or not.
5.
Security
Bank
demands security for sanctioning loan.
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A specific limit is provided by a bank for
a period say 6 months to one year.
Separate cash credit is to be maintained
by bank
It is given to any party who fulfils
certain conditions
It is charged on amount withdrawn
Bank demands security of tangible assets
to sanction cash credit.
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LOAN CASH CREDIT
