sudhakar shakya (Student CA IPC / IPCC) (42 Points)
17 September 2014Can some one tell me what is the difference between the Bank Overdraft and Bank Overdraft loan?
Muniswamy nayak veerabhadrappa
(Smilax Laboratores Limited Jeedimetla)
(104 Points)
Replied 17 September 2014
For a bank overdraft, you should have an account with the bank and it is a limit on borrowing on a bank current account. With an overdraft the amount of borrowing may vary on a daily basis.
A bank loan is a fixed amount for a fixed term with regular fixed repayments. The interest on a loan tends to be lower than an overdraft.
M Veerabhadrappa
Finance Manager (Ex-) Hindustan Fluorocarbons Limited,
Hyderabad,
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 17 September 2014
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