Overdraft Facility Personal Loan
When a current account holder requires a temporary accommodation, he may be allowed by the bank, on written request and against some collateral security, to overdraw his current account up to a specified or agreed limit. So an overdraft implies that a customer has a current account in the bank. This is a form of temporary bank credit to be made use of occasionally by the customer.
Thus, it should be noted that this is not a regular financial arrangement. After the expiry of the agreed period, the borrower has to repay the borrowed amount with eligible interest thereon to the bank. Hence, it is one of the most preferred credit options availed to meet varied personal funding requirements without limit.