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what is the diff between CASH CREDIT limit & margin.
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Answer Posted / thakur
Cash Credit Limit is the limit what the banks issue to
companies/firms against hypothecation of stock/debtors etc.
to meet the financial requirements.
for example :
Total debtors/Stock = 100%
Less Margin 25%(as per banks term & conditions)
Net balance =75% (Cash Credit Limit)
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