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प्रश्न
Explain the following term/concept.
Overdraft
स्पष्ट कीजिए
उत्तर
- A company having a current account with a bank is allowed an overdraft facility.
- Under an overdraft facility, the bank allows its customer to overdraw an amount up to a particular limit, i.e. to withdraw more than the credit balance amount in his current account.
- Repayments can be made whenever required during the time period.
- The interest is determined based on the actual amount withdrawn. Generally, the bank charges a low-interest rate, and collateral securities are usually accepted for an overdraft facility.
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Sources of Borrowed Capital - Commercial Banks
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संबंधित प्रश्न
Write a word or a term or a phrase which can substitute the following statement.
The credit facility provided to a company having current account with bank.
State whether the following statement is true or false.
Cash credit is given against hypothecation of goods or any security
Find the odd one.
Answer in brief.
What are the schemes for disbursement of credit by bank?
