Differentiate between "Cash Credit" and "Overdraft" ?

overdraft arises in debit accounts where the type of the account is debit, but cash credit is based on an agreement.

A cash credit is a short-term cash loan to a company. A bank provides this type of funding, but only after the required security is given to secure the loan. Once a security for repayment has been given, the business that receives the loan can continuously draw from the bank up to a certain specified amount

An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation the account is said to be "overdrawn". 

Cash Credit refers to a short-term loan granted by a bank / financial institution for a specific period normally less than one year. Cash credit is normally given for a particular project or task. In cash credit bank normally open a separate account for the loan.

Overdraft is a line of credit in which bank grants the customer a limit up to which he can draw money from the bank. Overdraft is normally continuous and renewable line of credit and is not restricted to a particulars project or task.

The difference is very subtle and relates to the operation of the account. In the case of Cash Credit, a proper limit is sanctioned which normally is a certain percentage of the value of the commodities/debts pledged by the account holder with the Bank. Overdraft, on the other hand, is allowed against a host of other securities including financial instruments like shares, units of mutual funds, surrender value of LIC policy and debentures etc. Some overdrafts are even granted against the perceived "worth" of an individual. Such overdrafts are called clean overdrafts.

In cash credit cash is made available to company before it is used. In overdraft cash is made available after it is use. That is another way to describe the difference.