Basis | Call loans | Long term loans |
Time-period | They are provided for a period of 7-15 days. | They are provided for a period of more than 5 years. |
Interest rate charged | They charge lowest interest rates. | They charge highest interest rates. |
Users | They are mostly availed to by bill-brokers and stock brokers. | They are mostly availed by big private companies and PSU companies. |
Recall of loan | These loans can be recalled by the banks at any time from the borrower. | These loans can be recalled only after giving a prior notice to the borrower. |
Basis | Current account | Savings account |
Definition | Current accounts are those accounts which facilitate their consumers to carry out day to day transactions. | Savings accounts encourage their consumers to save. |
Interest rate offered | These accounts offer minimal interest rates or no interest. | These accounts offer comparatively higher interest rates. |
Users | They are mostly created by big companies, businessmen, traders etc. | They are mostly created by the salary class, farmers etc. |
Overdraft facility | This facility is available for a current account. | This facility is not available for a savings account. |
Bases | Cash credit | Overdraft facility |
Definition | A loan taken in the form of cash by anyone from the bank against some securities is called cash credit. | Commercial banks allow their customers to withdraw an amount from the bank in excess of their balance. |
Drawers | Anyone can take a cash loan from banks against some securities. | Only current account holders can avail this facility. |
Interest rate charged | They charge higher rates of interest against a cash loan. | They charge minimal rates of interest against an overdraft. |