- a form of loan by which a person with a trading bank current account is given permission to continue making drawings on the account up to an agreed limit, after the balance has been reduced to nil. Glossary of Business Terms————
* * *overdraft o‧ver‧draft [ˈəʊvədrɑːft ǁ ˈoʊvərdræft] noun [countable] especially BrEBANKING an arrangement between a bank and a customer, allowing them to take out more money from their current account than they had in it, or the amount involved:
• We can offer current accounts with overdraft facilities.
• The authorised overdraft (= one that the bank agreed to give ) interest rate is normally cheaper than bank personal loan rates.
• You will find that you will be charged more for an unauthorised overdraft.
• We often reached our overdraft limit because of cashflow problems.ˈbank ˌoverdraftan amount by which a bank account is in debt
* * *A short-term borrowing facility offered by banks. Overdrafts are usually repayable on demand and are more expensive than longer-term borrowing.
* * *overdraft UK US /ˈəʊvədrɑːft/ US /ˈəʊvərˌdræft/ noun [C] (also bank overdraft)► BANKING an amount of money that a customer with a bank account is temporarily allowed to owe to the bank, or the agreement which allows this: run up/have an overdraft »
Research shows that 58% of students have an overdraft.»
I paid off my overdraft as soon as I got my pay cheque.»
We have an overdraft facility of £500 with our bank.»
an overdraft fee/rate/charge»
a free/interest-free overdraft
Financial and business terms. 2012.