It is a revolving credit line. It is concluded for a period of one, less often – for two years. The borrower gets the opportunity to spend money in excess of the amount on the account, with the obligation to return within 1-2 weeks. Repayment of the debt occurs by automatic write-off of funds after the next receipt.
The credit limit is usually set depending on the current account turnover and is about 15-40%. Overdraft is one of the few types of lending to organizations without providing collateral. The funds are spent by the borrower at its own discretion.
It is a revolving loan with a fixed limit, valid for the period specified in the contract. The borrower takes the required amount on a separate application, but necessarily within the limit. If desired and possible, the debt is repaid on a similar application. The number of such operations is not regulated.