New Delhi, March 11 -- The choice between appropriate loan options becomes vital for urgent financial situations. The freedom they both grant comes from different loan functionalities of overdrafts and personal loans. Knowledge about their fundamental variations helps you decide better and achieve ultimate savings.

Personal loans function as unsecured financing which allows you to obtain a specified amount at an agreed upon time span by paying back the debt through equal monthly instalments (EMIs). The purpose of personal loans is usually to handle significant payments including wedding expenses, house renovations, education fees and emergency medical treatment.

A pre-approved funds-based overdraft loan serves as a credit facility that ...