Over Draft Loan
Overdraft facility is the form of short-term credit, meant for meeting the working capital requirement of the borrower. It is the credit facility that allows the Current Account Holder of the Bank to draw more than their credit balance in the account, within the approved limit. The Bank allows overdrawing of current account within the limit for a certain period of time. After the expiry of such period, the limit may be either called up or is renewed, depending on the performance of such account.