The points showing the difference between the cash credit and overdraft are:
(1) Overdraft is permitted to those customers who have current account with the bank while cash credit can be granted to anyone .
(2) Cash credit is granted after acquiring full security while overdraft is generally given against personal security because current account holders are old and reliable customers of bank .
(3) Overdraft is given for very short ** while cash credits are granted for a fixed ** .
(4) Interest rates charged on overdraft are higher than interest rate charged on cash credit .
