Overdraft | Loan |
A short term debt | A long term debt. |
Does not require collateral security. | Requires collateral security. |
Granted only to current account holders | Granted to any category of bank customers. |
Repayable with short period of time. | Repayable within longer period of time. |
Small sum of money is usually involved. | Larger sums of money are usually involved |
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