An overdraft facility is a financial service provided by banks and financial institutions that allows account holders to withdraw more money from their bank account than the available balance, up to a certain pre-approved limit. In other words, an overdraft facility allows individuals or businesses to temporarily borrow money from the bank when their account balance is insufficient to cover their expenses.
Overdraft facilities can be useful for individuals or businesses that experience temporary cash flow shortages, unexpected expenses, or need to cover short-term expenses. However, it's important to use the overdraft facility wisely, as it can be expensive if used for extended periods or if the account holder exceeds their overdraft limit.
