Answer / kinchit chawla

cash credit limit is the maximum amount sanctioned by a bank for your short term working capital requirement. it differs from short term loan. a short term loan attracts interest for the entire period for which loan is sanctioned and the principal amount is credited to your current account. in case of cc limit the amount is not credited to your current account. you can withdraw that amount any time and interest will be charged only for that period for which you have used that amount. cc limit is given only to highly credible customers of a bank.

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