Difference Bw Bank Overdraft And Bank Loan?

Answer 1

A loan is an agreement between us and the bank to repay a fixed amount of money over a duration (usually years) as equated monthly installments.

An overdraft is similar to a loan but is slightly different. In case of overdraft you can withdraw cash to a certain limit more than your bank account balance. you can repay this amount within the next few days or weeks or months. for as long as you have used the overdraft amount, the bank would charge an interest. the moment you repay the whole amount you would be eligible to re-use the entire overdraft amount again.