Difference between bank overdraft and bank overdraft loan

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,