Banking · Credit Facilities
Which characteristic is unique to a Cash Credit (CC) facility compared to a Term Loan?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The repayment tenure is fixed, and the principal is repaid in fixed installments.
- 2The interest is charged only on the sanctioned limit, irrespective of the amount drawn.
- 3The facility is generally secured by the hypothecation of Current Assets (Inventory and Receivables).✓
- 4The purpose is to acquire fixed assets or fund capital expenditure.
Correct answer
The facility is generally secured by the hypothecation of Current Assets (Inventory and Receivables).
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Banking?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Credit Facilities MCQs →Want more practice questions on Credit Facilities?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Banking · Credit Facilities