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
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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In Cash Credit, the interest is charged only on the amount that is actually utilized or withdrawn by the borrower, not on the total sanctioned amount.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.
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