Overdraft Calculator

A loan charges interest on the full disbursed amount over a fixed schedule with fixed EMIs. An overdraft charges interest only on the amount you've actually drawn on any given day, and there's no fixed EMI — you repay flexibly within your account.

Typically calculated daily on the utilized (negative) balance and debited periodically, rather than on the full sanctioned overdraft limit — so interest cost rises and falls with how much of the limit you actually use.

An overdraft is specifically tied to your existing bank account going into a negative balance up to a sanctioned limit. A line of credit is typically a separate standalone facility not tied to your regular transaction account — see the Line of Credit calculator for that structure.

Generally no — you can repay and redraw within your limit as needed, though the facility itself may need periodic renewal with the bank.

You're only charged interest on what you actually draw, so an unused portion of the sanctioned limit typically doesn't cost you interest (though some banks charge a commitment or facility fee on the limit itself).