Overdraft is a financial instrument in which the money can still be withdrawn from the current or savings account, even if the account balance goes below zero. It is a type of extension of monetary limit offered by banks and that money is said to be ‘overdrawn’. An authorized overdraft limit is assigned for each customer depending on their relationship with the bank. The customer can withdraw money up till the assigned limit. Banks do charge interest rate on the money withdrawn in form of overdraft.
- Higher Overdraft Loan amount avalibility.
- Low processing time.
- Accountability of transaction.
- Tough repayment timeline.
- Lower rate of intrest for loan.