An Overdraft Limit is a flexible financial facility that allows individuals or businesses to withdraw funds beyond the available balance in their bank account, up to an approved limit. It can be useful for managing temporary cash-flow requirements, working capital needs, urgent expenses, or short-term business obligations. Interest is generally charged only on the amount actually utilized rather than the entire sanctioned limit. The facility provides convenient access to funds without requiring a separate loan application every time money is needed. Eligibility and the approved limit may depend on factors such as income, banking history, credit profile, business performance, and financial requirements.
