Bank Overdraft & Cash Credit.

Bank Overdraft & Cash Credit
Bank overdraft and cash credit facilities are both forms of short-term borrowing provided by financial institutions to individuals and businesses.

Here’s a detailed explanation of each:
1. Bank Overdraft:
i. An overdraft is a financial arrangement where a bank allows an account holder to withdraw funds from their account even if the available balance is zero or negative, up to an agreed-upon limit.

ii. It is a flexible form of borrowing, as the account holder can access funds as needed, up to the authorized limit, without needing to apply for a new loan each time.