Overdraft Loan Meaning in Telugu

An overdraft loan is a financial arrangement in which a bank allows a customer to withdraw more money from their account than what is actually available, up to a certain limit. This type of loan is typically used to cover short-term cash flow problems. In Telugu, this concept can be described as follows:

Overdraft Loan (ఓవర్డ్రాఫ్ట్ లోన్): An overdraft loan provides the account holder with a line of credit that exceeds their actual balance. It’s often used for emergencies or to manage unexpected expenses. The key features of an overdraft loan include:

1. Credit Limit: The bank sets a maximum limit that the account holder can overdraw.
2. Interest Rates: Interest is charged on the amount overdrawn, usually at a higher rate compared to standard loans.
3. Repayment: The amount overdrawn must be repaid within a specified time frame, although this can vary.
4. Fees: There may be additional fees or charges associated with overdraft loans.

In Telugu, an overdraft loan can be referred to as "అధిక జమ వాయిదా" or "ముఖ్య జమ ఆధారిత రుణం". This type of loan is useful for individuals who need quick access to additional funds but should be managed carefully to avoid high interest costs.

Overall, overdraft loans can be a helpful financial tool when used responsibly but can lead to significant debt if not managed properly.