What is the difference between Cash Credit and Overdraft?

What is the difference between Cash Credit and Overdraft?

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Overdraft is a fixed limit given to the client and Cash Credit is a limit given to the customer but the client can use the amount based on his DP (formula for illustration:(Stock+Debtors-Creditors)*75%). No stock audit required during the tenor of the loan in OD. Stock audit is rarely stipulated.

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