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What is the difference between an overdraft facility and a revolving loan?
Wiki User
∙ 9y ago
The biggest difference between an overdraft facility and a revolving loan is that a bank is required to make the revolving loan. An overdraft facility is only an agreement between the bank and the customer that fulfills requests that are no more than a certain amount. The revolving loan is also up to an agreed maximum amount, but only if the borrower agrees to the terms in their agreement.
Wiki User
∙ 9y ago
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Difference between cash credit and overdraft?
Cash is money. Credit is a delayed form of payment. Overdraft is based on credit and is also a delayed form of payment.
How do you calculate overdraft?
it is the difference between current assets and current liabilities which is the working capital gap
What is the difference between a loan and an overdraft?
an overdraft is over drawing on a current account in excess of the credit balance whilst a loan is the act of lending or borrowing, for temporary use with permission
Is a mortgage same as overdraft?
No. Overdraft is a facility wherein a customer can withdraw money from his account even if he does not have sufficient balance to cover for it. He would have to eventually return the money to the bank but still he can take cash for his requirements anytime he wants. Mortgage is a facility wherein a customer borrows money from a bank to purchase a home. The only similarity between overdraft and mortgage is the fact that you will be paying an interest to the bank in return for the cash you borrowed from them.
What is the Difference between bank overdraft and clean overdraft?
OVERDRAFT CLEAN OVERDRAFT1. Overdraft may be secured or 1. Clean overdraft is alwaysunsecured. unsecured.2. Generally ,continues for longer 2. Generally granted for shortperiods by annual renewal of limits. periods but not continued forlong periods.3. Generally overdraft facility is entertained 3. Request for clean advancesto any of the current account holders are entertained only to partiesif required depending upon certain who are financially sound andfactors like repayment capability/credit reputed for their integrity.worthiness etc,4. Securities may be shares ,govt securities 4. The bank has to rely upon theetc, personal security of borrowers
What is the difference between a Revolving Loan and an Overdraft?
The biggest difference between an overdraft facility and a revolving loan is that a bank is required to make the revolving loan. An overdraft facility is only an agreement between the bank and the customer that fulfills requests that are no more than a certain amount. The revolving loan is also up to an agreed maximum amount, but only if the borrower agrees to the terms in their agreement.
Difference between cash credit and overdraft?
Cash is money. Credit is a delayed form of payment. Overdraft is based on credit and is also a delayed form of payment.
How do you calculate overdraft?
it is the difference between current assets and current liabilities which is the working capital gap
What is the difference between a loan and an overdraft?
an overdraft is over drawing on a current account in excess of the credit balance whilst a loan is the act of lending or borrowing, for temporary use with permission
Is a mortgage same as overdraft?
No. Overdraft is a facility wherein a customer can withdraw money from his account even if he does not have sufficient balance to cover for it. He would have to eventually return the money to the bank but still he can take cash for his requirements anytime he wants. Mortgage is a facility wherein a customer borrows money from a bank to purchase a home. The only similarity between overdraft and mortgage is the fact that you will be paying an interest to the bank in return for the cash you borrowed from them.
What is the difference between a Revolving Fund and a Refund?
A revolving fund is continuously replenished as funds are withdrawn. A refund is a complete repayment, or payback, of a certain amount of money.
What is the Difference between bank overdraft and clean overdraft?
OVERDRAFT CLEAN OVERDRAFT1. Overdraft may be secured or 1. Clean overdraft is alwaysunsecured. unsecured.2. Generally ,continues for longer 2. Generally granted for shortperiods by annual renewal of limits. periods but not continued forlong periods.3. Generally overdraft facility is entertained 3. Request for clean advancesto any of the current account holders are entertained only to partiesif required depending upon certain who are financially sound andfactors like repayment capability/credit reputed for their integrity.worthiness etc,4. Securities may be shares ,govt securities 4. The bank has to rely upon theetc, personal security of borrowers
What is the difference between credit card and revolving credit?
A credit card is a type of revolving credit, whereas a revolving credit account may or may not be a credit card. Revolving credit can also include other types of accounts, such as a revolving line of credit with a bank or a home equity line of credit.
What is facility difference between Private Institute and Government Institute?
its fasfooot
Difference between bank loan and bank overdraft?
These two terms are different.For a bank overdraft, you should have an account with the bank and it is a limit on borrowing on a bank current account. With an overdraft the amount of borrowing may vary on a daily basis.A bank loan is a fixed amount for a fixed term with regular fixed repayments. The interest on a loan tends to be lower than an overdraft.
What is the difference between overdraft and overdrawn?
Overdraft is a feature provided by many banks to its best customers wherein, the customer can withdraw money from their accounts even if there is not sufficient balance in their account. The overdraft limit is set by the banks based on the customers history with the bank and his earning potential. An account is said to be overdrawn if the customer has withdrawn more money that what he has in the account.
Difference between funded and non-funded credit facilities?
fund based facilities includes cash credites, bill discounting, overdraft and term loan
