The major difference between Cash Credit & Overdraft is dependent on various factors like
– Purpose
– Who can obtain it
– How can it be obtained
– Security,
– Interest Rate,
– Limit

Cash Credit is a type of short term loan given to business undertakings to satisfy their everyday working capitals and on the other hand, Overdraft is a facility given by the bank to borrower (individuals, firms, companies or others) to withdraw money from the banks even if balance in his bank account is low, zero or below the amount to be drawn.