Question

What is the difference between loan and cash credit?

Answer 1

The difference between loan and cash credit is that cash credit is a type of short term loan while loan in itself can be of many types and of short or long term.

In other words, loan is a bigger term that also includes cash credit, while cash credit is a part of loan.

Also read:

• Difference Between Cash Credit and Overdraft
• Difference Between Shares and Debentures
• What Are Equity Shares
• Forfeiture of Shares
• Issue of Shares

Learn about more commerce questions and answers from different topics in business studies, economics and accountancy from our website.