Overdraft Loan

An overdraft loan is a form of revolving credit which is made available by banks to holders of certain types of accounts. Bank account holders can overdraw their account up to a predetermined limit. Interest is charged on the outstanding balance.

Overdraft loans can normally be repaid in full at any time without following an amortization schedule.

Many Swiss banks provide overdraft loans with their private accounts and business current accounts. Overdraft loans are not provided with Swiss savings accounts.

Overdraft loans provide a convenient and flexible way to access money and allow for greater liquidity. However, they often have low limits and interest rates can be high. Personal loans and business loans – which may also be provided as cash loans with no need for a special bank account – provide an alternative to overdraft loans.

More on this topic:
Personal loan comparison
Business loan comparison

About moneyland.ch

moneyland.ch is Switzerland’s independent online comparison service covering banking, insurance and telecom. More than 100 unbiased comparison tools and calculators are available on moneyland.ch, along with useful financial guides and timely news. The comprehensive comparison tools help you to find the right insurance policies, bank accounts, credit and prepaid cards, loans, mortgages, trading accounts and telecom products for your needs.