Question:
In case of Cash Credit, interest is charged on _____ loan availed.
In case of Cash Credit, interest is charged on _____ loan availed.
Updated On: Dec 16, 2024
- actual
- sanctioned
- 0.5
- 0.8
Hide Solution
Verified By Collegedunia
The Correct Option is A
Solution and Explanation
In Cash Credit, the interest is charged only on the amount that is actually utilized or withdrawn by the borrower, not on the total sanctioned amount. This makes Cash Credit cost-effective for businesses.
Was this answer helpful?
0
0
Top Questions on Loans
Questions Asked in CBSE X exam
- Imagine you are a part of a 'Self Help Group' (SHG). Explain the working system of the Self Help Group (SHG) to the new member.
- CBSE Class X - 2025
- Money and Credit
- Suggest any two measures to ensure participation of women in public life.
- CBSE Class X - 2025
- Gender, Religion and Caste
- Name a metal found in the earth's crust:
(i) in free state and
(ii) in the form of its compound.
State where each of these metals are placed in the reactivity series of metals- CBSE Class X - 2025
- Light - Reflection and Refraction
- In a right triangle ABC, right-angled at A, if $\sin B = \dfrac{1}{4}$, then the value of $\sec B$ is
- CBSE Class X - 2025
- Trigonometry
- Why was the Indian subcontinent significant to trade networks before European intervention? Explain.
- CBSE Class X - 2025
- The Making of a Global World
View More Questions