Overdraft is flexible, allowing for withdrawals and repayments within a limit, while a loan typically has a fixed amount and repayment schedule.
Key points
Match the instrument to your needs.
Don't choose flexibility without considering the cost.
Overdraft is flexible, allowing for withdrawals and repayments within a limit, while a loan typically has a fixed amount and repayment schedule.
Match the instrument to your needs.
Don't choose flexibility without considering the cost.
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