SBI PO Mains Model Papers 2

Question : 111 of 155

Marks: +1, -0

Which of the following statements about the Cash Credit and Overdrafts is NOT TRUE?

In Cash Credit facility, an amount of loan is given to the borrower / businessmen for his working capital needs.
The rate of interest on over draft credit is somewhat higher than on cash credit.
For cash credit, the security offered is current assets of the business.
Overdraft is a temporary facility.
For both cash credit and overdrafts, there is an agreed limit

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