Overdraft Loan: An Overdraft Loan is a type of short-term borrowing facility that allows an individual or business to withdraw more money from their bank account than is currently available, up to an agreed limit. In essence, an overdraft provides temporary access to funds when the account balance goes below zero, offering a safety net for managing cash flow gaps. An Overdraft (OD) loan is a credit facility provided by banks that allows individuals or businesses to withdraw more money than what is available in their current or savings account, up to a pre-approved limit. Interest is charged only on the amount utilized, not on the total limit. The OD limit is usually sanctioned against collateral such as Fixed Deposit, property, or other financial assets. This facility helps manage short-term cash flow needs, unexpected expenses, or temporary liquidity shortages. Borrowers can deposit money back at any time to reduce interest charges. OD loans offer flexibility, quick access to funds, and efficient cash flow management.