An overdraft facility is a credit line that allows you to withdraw money from your bank account even when your balance is zero. It’s a short-term loan that you can use to cover unexpected expenses or cash flow gaps.

An overdraft is a borrowing facility attached to your bank account, set at an agreed limit.

An overdraft limit is the maximum amount of money that a customer can withdraw beyond their account balance.

An overdraft is a loan provided by a bank that allows a customer to pay for bills and other expenses when the account reaches zero.

Overdraft facilities are generally intended for short-term borrowing to cover immediate cash flow gaps, not long-term financing. Extended use of an overdraft may result in higher fees and interest charges.

Yes, overdraft facilities usually have interest rates applied to the overdrawn balance. Additionally, there may be setup fees or monthly maintenance fees depending on the bank and the type of overdraft agreement.

Yes, it’s possible to request an increase in your overdraft limit, but it depends on your bank’s policies and your financial history. The bank may require proof of income or other documentation to approve the increase.

Most overdraft facilities are unsecured, meaning they are not tied to any collateral. However, for larger overdrafts, some banks may require security or a guarantee to reduce their risk