Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
EMD or Earnest Money Deposit is a deposit type that is paid by home buyers to the sellers of any property. This is paid as a token amount or initial deposit to the property seller, indicating the interest in purchasing the property. Whenever there is any bid or auction, then this is sometimes taken by the entity organizing the auction, to make sure that serious bidders only take part in the proceedings. This deposit is refundable and is taken as a bank guarantee, fixed deposit, or bank draft.
The earnest money deposit is the amount paid by the buyer to a seller, showing his/her willingness to purchase the property in question. This is often paid in good faith after the verbal agreement to purchase the property as well. However, this is not the same as the down payment. The down payment is the amount paid for buying the property upfront. The down payment guarantees the purchase, while the EMD is more of an expression of interest.
