WHAT IS THE CASH CREDIT AND LETTER OF CREDIT?

Answer Posted / jiban sankhali tripathy

cash credit is a system by which a banker allows credit
limit to his customer against hypothecation of stock (i.e
store items,finished goods & semi-finished goods.)

letter of credit is a system by which a banker gives th e
credit limit to his customer by taking some margin money
without any hypothecation of stock.

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