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hey everybody I am surbhi and you are watching key differences in this video we will talk about the differences between cash credit and overdraft so friends without further Ado lets get started [Music] cash credit cash credit is a facility in which banks provide short-term or medium-term cash loans to its customers against some tangible Securities like stock book debts or personal guarantee etc for this purpose the customer is required to open an account that is cash credit account with the concerned Bank on which a fixed credit limit is provided basically this limit is based on the certain percentage of the value of security is placed further this limit may vary from bank to bank and customer to customer for this facility the bank charges interest on the amount actually withdrawn by the customer and not on the limit sanctioned moreover the amount is repayable on demand that is the bank may ask for its repayment anytime further as the credit limit is based on value of Securities pledg
