Cash Credit Loan
Cash Credit (CC) is a source of short term loan for businesses and companies. Cash credits are also called working capital loans as they fund the instant cash requirements of the organizations, or to purchase current assets. Borrowing limits on the amount of cash available for credit for the company varies between banks. It is taken for a short term, the repayment of the amount taken on credit is also set. Cash credit is a loan and banks demand collateral to approve it. Cash credits are similar to overdraft facilities, though there are significant differences between them. Cash credit is available for a shorter period of time and at a significantly less interest rate than overdrafts. Cash credit is used by financial institutions and businesses and with a collateral, which thus becomes a loan.