Overdraft account is given both for business and personal uses. OD is given to customers against bank FDRs and against house property etc. Whereas CC limit set for customers business needs against stock of materials , sundry debtors etc with or without collateral security.

Points to be considered while opening an Overdraft or CC Account. ... A businessman has two options while taking a loan for his business. ... to save interest by depositing extra funds in the account and thus paying interest only for amount needed.