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What is the meaning of Drawing Power in CC A/c
30-Jun-2023 (In Banking / Finance Law)
Dear Sir, Pls tell the meaning of Drawing Power in CC A/c . Also tell example and its logic. Can't understand sir.. Thanks 2) Pls tell the what is the relation of stock of a company with CC A/c ?? Can't understand.
CC A/c is short name for Cash Credit account, which is open by giving some collateral security to the Bank. It is a type of loan account in which Bank sanction a loan account in which limit is fixed for withdrawing for business use. The rate of interest is charged on monthly rest amount. The other security is taken by bank as Hypothetication of all stock of the company . If the company does not pay the EMI, Bank can issue notice to the company and can sell all stock of the company to recover the loan account.
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Adv. Pranesh
Delhi | 25+ Answers
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