Sanction limit is initially computed it represents maximum amount of working capital loan, which can be given to borrower. It is computed based on historical data, forecasts and the security position. Then as per the present status of the business, present debtor stock and creditor position maximum withdrawal limit is computed this is called drawing limit. So the drawing limit is computed based on monthly present data, current data. Generally drawing limit is less than sanction limit and borrower has to comply with both the limits. He cannot exceed neither the sanction limit nor he can exceed the drawing limit so you can say that sanction limit is on the basis of idle situation how much loan should be given and drawing limit is as per the present situation as per the present circumstances