New Delhi, March 12 -- Flexibility is often of utmost importance in good financial management, especially when it comes to catering to any unexpected costs. An overdraft loan is such a financial instrument that, if used wisely, imparts this flexibility. This guide explains the fees, advantages, and important factors to consider before taking an overdraft loan.

An overdraft loan allows people and businesses to take some amount beyond what they have in their respective accounts, up to a preapproved limit. Even in situations where there is not much money in the account, this instrument helps accomplish an urgent cash flow need. The total amount of overdraft relies on factors involving the relation of the borrowing party with the bank combin...