State the distinct features of cash credit facility. - Vidyadip

Question

State the distinct features of cash credit facility.

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Answer

The features of cash credit facility are as follows:

The bank allows the borrower to borrow upto a specified limit.
The amount is credited to the account of the borrower.
The customer can withdraw the amount as and when required by him.
Interest is charged on the amount actually withdrawn.
It is usually granted on a bond or some other security.

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