Most customers find it difficult to differentiate between Loan and Overdraft but this post has come to their rescue.

Individuals who are looking for borrowing money from the bank will be more interested in understanding the difference between loan and overdraft (OD) and which one is better to avail. Both terms are used while availing amount from the bank for which interest will be charged depending on the duration. Many business individuals or current account holders will be looking for OD and Loan facility from banks to meet their constant demand.

Here are 5 differences between loan and overdraft: