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In Cash Credit, the interest is charged only on the amount that is actually utilized or withdrawn by the borrower, not on the total sanctioned amount.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
- Explain the classification of food according to the length of time of storage.
- CBSE Class X - 2024
- Food Products
- Enlist the types of Plant Nursery
- CBSE Class X - 2024
- Nursery Technique
- Explain the modern methods of irrigation. (any one)
- CBSE Class X - 2024
- Irrigation & Water Conservation Methods
- State the difference between AC and DC. (Support your answer with a diagram.)
- CBSE Class X - 2024
- Introduction to Electrical Techniques and Practices
- What are the common factors which affect our health? (any two)
- CBSE Class X - 2024
- Health and Hygiene
View More Questions