Question

Which of these is generally a short term loan?

Options

• Cash credit

• Home loans

• Overdraft

• Car loans

Answer 1

Cash credit

Explanation:

Cash credit is a type of short-term funding for a business. It allows a business to withdraw funds from a bank account even if there is no credit balance. The account can only borrow up to the amount specified in the borrowing limit. The interest is calculated on the current balance, not the borrowing limit set by the bank.