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Question
Write a short note on:
Cash Credit
Solution
Cash credit is a financial arrangement in which a bank advances cash loans to customers up to a certain limit in exchange for security. The borrower opens a current account in the bank with the amount of the cash loan after it is approved. The borrower has the option to withdraw the entire loan amount. The borrower is paid interest only on the amount he actually uses, not on the entire amount provided to him.
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