Overdraft Facility is a type of financial product through which you can withdraw money from your savings or current account, even if your account balance is zero. This feature is offered by various Private and Public Sector Banks.

An overdraft facility is a type of short-term loan to be repaid in defined tenure, as required by the lender. Lenders shall levy the interest rates that the borrower needs to repay, as per the Bank’s terms and conditions. In the case of Overdraft, the type of interest rates offered by the lenders are both fixed and not floating.