Hi there,I am a finance student and I have often seen my friends being confused about the CC limit against property and the OD limit against property. While I understand that this confusion may reap up, I also want to tell you that there are many key differences between both. I’m just glad I ended up on this question through which I can make you understand clearly all that I have read and understood about CC limit against property and also hone my skills about the same.Looking for Home Loans at reasonable rates? Try NoBroker and get Home Loans starting at 6.5% rate of interest from the leading banks of India.When your firm requires a working capital limit, you have two options: an overdraft facility or OD limit from a bank or NBFC, or a CC limit from a bank. Banks and NBFCs can provide overdraft or OD limits, but only banks can provide CC limits or cash credit limits. The major security mortgaged by the bank or NBFC for an overdraft facility is the borrower's assets, whereas the key security for a CC limit is the company's stock and debtors.What is CC limit against property in SBI or any other Bank?A cash credit limit, often known as a CC limit, is a type of current account that includes a chequebook. Small medium companies (SMEs) are granted a cash credit limit, or CC limit, by the bank to meet their working capital needs. The bank accepts stock and debtors as principal security from CC limit holders. An SBI CC limit against property, also known as a cash credit limit, allows you to withdraw money or write checks up to the approved CC limit, even if the account has no balance. It is a 12-month short-term credit facility that is renewed after each 12-month period.The cash credit limit loan in Delhi, also known as the CC limit, is the maximum amount you can withdraw from your bank account. The bank, on the other hand, sets the withdrawal limit. The borrower must pay interest only on the amount borrowed, not on the limit imposed. Interest is calculated daily and deducted from the cash credit or CC account on a monthly basis. You can withdraw whatever amount you repay into the cash credit or CC account as long as the limit is not exceeded. As a result, revolving credit is also known as cash credit limit or CC limit facility.I hope now you have a clear understanding on CC limit against property and you will no longer get confused with OD limit against property.Read More:What is Loan Against Property?How to Get a Loan Against Property?
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CC Limit Against Property?
Oshin Barua
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May 20, 2022
2022-05-20T20:32:52+00:00 2022-05-20T20:32:53+00:00Comment
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