What Is an Overdraft Facility?

Answer by  ZainFerzan (25)

An overdarft is a kind of short-term loan. A customer subscribes for this facility and whenever he is short of funds in his/her account, the bank immediately provides the extra funds required to complete the transaction. Intrest is charged on it also. The amount provided by the bank has a limit that depends from case to case.

Answer by  JamieeD (36)

An overdraft facility is a term used by banks as a means for allowing it's account holders to over withdraw from their bank but it's usually accompanied by a small fee. It makes a bank more flexible and at the same time gives it's costumers a benefit.

Answer by  Bizybee (134)

It is a feature where a bank allows the account holder to draw extra cash up to a specified amount when they are in excess of the amount on deposit.