LOAN CASH CREDIT

50.  LOAN	CASH CREDIT
1.      Meaning A lumpsum amount is advanced for a period of one year or more 2.      Account Separate loan account is to be maintained by bank 3.      Borrowing Party It is given to any party who fulfils certain conditions. 4.      Interest Charged It is charged on amount sanctioned whether utilised or not. 5.      Security Bank demands security for sanctioning loan.	A specific limit is provided by a bank for a period say 6 months to one year. Separate cash credit is to be maintained by bank It is given to any party who fulfils certain conditions It is charged on amount withdrawn Bank demands security of tangible assets to sanction cash credit.