Overdraft and cash credit are two types of financial products that allow individuals or businesses to borrow money temporarily when they do not have enough funds in their account. An overdraft is a facility offered by a bank or building society that allows account holders to borrow money up to a pre-agreed limit. This borrowing can be used to pay for purchases, cover unexpected expenses or withdrawal of cash from an ATM. Cash credit, on the other hand, is similar to an overdraft but provides interest-free borrowing for a fixed period of time, usually around 16-18 days. These products are designed to help manage short-term cash flow and can be a valuable tool when used responsibly. 

 An overdraft is a banking service that allows you to borrow money against the balance of your checking account. This means that if you withdraw more money from your account than you have available, the bank will cover the difference, up to a certain limit, known as your overdraft limit. This can be helpful in situations where you need to make an unexpected payment or cover a temporary shortfall in funds. However, it’s important to be aware that overdrafts often come with fees and interest charges, so it’s best to use this service sparingly and only when necessary. 

 Cash credit refers to a type of payment method where a customer pays for a purchase using cash and receives a credit card with the purchase amount already charged to it. This allow the customer to make future purchases without having to pay the balance upfront. Often, credit cards offer cash-back or reward points for purchases, which can be redeemed for future discounts or purchases. It’s important to consider the terms and conditions of cash credit, as interest rates and fees may apply.