Explain the following term/concept.
(a) An overdraft implies only to the existing current account holder. Therefore, it is a credit facility granted by a bank to current account holders. Under an overdraft facility, the bank allows its customer to overdraw an amount, up to a particular limit, i.e. to withdraw more than the amount of credit balance in his current account.
(b) Generally, a low rate of interest is charged by bank, and collateral securities usually accepted for an overdraft facility.