An Overdraft Loan is a flexible credit facility that allows borrowers to withdraw funds beyond their available bank balance up to an approved limit. It is designed to manage short-term cash flow requirements efficiently.

Interest is charged only on the amount utilized, not on the entire sanctioned limit, making it cost-effective. Borrowers can withdraw and repay funds multiple times within the limit, providing continuous liquidity. Overdraft facilities may be secured or unsecured depending on eligibility and lender policies.

This loan helps businesses handle daily expenses, manage receivables, and meet urgent financial needs without disrupting operations.

Ideal for: Working capital management, operational expenses, and short-term funding gaps.