![](https://www.bengalurudccbank.com/wp-content/uploads/2024/02/OVER-DRAFT-LOAN-1.jpg)
An Overdraft is a flexible form of borrowing that allows businesses to withdraw funds from their Current
Account up to a pre-approved limit. Interest is only charged on the amount overdrawn for the period of borrowing, making it a cost-effective way to manage short-term cash flow.