Question

What is an overdraft facility?

Answer 1

1. The banks offer overdraft facilities to their customers who keep an active account with them.
2. When a consumer obtains an overdraft facility from a bank, this implies that he has the ability to take out more money than is available in his account, up to the overdraft amount.
3. Only the overdrawn amount is subject to interest charges from the bank.
4. The bank only offers overdraft facilities to dependable clients who maintain strong relations with them. This service is offered for a limited time only.