By Paskola Value: The difference between an overdraft facility and a personal loan. In case of an overdraft, interest is not charged until you actually withdraw the amount. Also, interest is charged only on the amount being used. Borrowing a loan is one of the most ways of business financing. There are various reasons people can borrow loans; it can be to finance their businesses, school fees loan among others. In a situation where you have insufficient funds, the only solution for you is to borrow a loan. You can borrow a loan to either meet short-term financial needs or long-term. You can either borrow a loan from a bank, friends, family, and relatives. Take a look at various benefits of borrowing a loan. What is it? The overdraft, when availed, is a short-term loan. The facility allows account holders to make withdrawals from an existing savings bank account even after the balance reaches zero. In other words, if you have an approved overdraft limit of ₹ 50,00...