OD/CC/DOD LIMIT TYPE
OD/CC/DOD LIMIT TYPE
CC/OD Limit
Overdraft and Cash Credit Account both are the type of loan accounts in which the account holder can withdraw the amount he requires.
Borrower has to pay the interest on the amount withdrawn from account. Cash credit is normally given on security of stock, debtors etc. It should be used for the purpose of business and balance sheet, p&l account, VAT return is required to be submitted to bank generally quarterly or annually. Overdraft is normally given on security of a fixed asset and it can be used for any purpose. Financial statements are generally not required to be resubmitted after approval. Both are secured line of credit with a lender.
DOD Limit
Dropline overdraft means a facility which a borrower can avail from different banks. These are new generation overdraft facilities which have both the features of Term Loans & Overdraft Facility, these limits can be for a period of 10 years where the drawing power of the borrower is reduced on month on month basis.
FAQs
Need a
OD/CC/DOD LIMIT TYPE?
