WHAT IS THE CASH CREDIT AND LETTER OF CREDIT?

Answer Posted / muralidharan t

Cash credit is a facility enjoyed by the traders from the
bank against hypothecation of stocks whereas the letter of
credit is a facility given by banks to the customers without
hypothecation of stock with margin money(safest lending) or
without margin money (competitive technology being followed
by different banks) for a stipulated period and
responsibility vested with one of the parties involved in
the letter of credit

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