1.

What is cash credit? What are the purposes for which banks give cash credit?

Answer»

The loans given to individuals and institutions by accepting collaterals are called cash credit. The collaterals that the bank accepts are : 

  • Salary certificate 
  • Fixed deposit certificate 
  • Physical assets like gold 

Cash credit is given for the following purposes :

  • For agriculture 
  • For industry 
  • For house construction 
  • Purchase of vehicle 


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