What is bank od account

A bank OD (Overdraft) account is a credit facility that allows you to withdraw money even if your account balance is zero. It acts as a short-term loan to meet immediate financial needs. Key features include:

• Interest is charged only on the amount utilized, not the total limit sanctioned.
• It offers flexible repayment options without fixed EMIs.
• The limit is determined by the bank based on your credit score, relationship, or collateral like FDs or property.
• It provides instant liquidity for emergencies or working capital.