MANAGEMENT

Detailed explanation-1: -What is an example of a short-term loan? An example of a short-term loan is a bank’s overdraft facility. Under this scheme, if the borrower’s account holds insufficient funds to make a payment, the bank extends additional funds.

Detailed explanation-2: -A bank overdraft is a credit facility where the current bank account holder is eligible to withdraw excess money over the amount present in their current bank account. It can be viewed as a short-term loan where the holder of a current bank account is entitled to take out excess money in case there is a need for it.

Detailed explanation-3: -Overdraft Loan It is a short-term loan taken for a short period. An overdraft facility can be availed on a secured or unsecured basis.

Detailed explanation-4: -An overdraft occurs when you don’t have enough money in your account to cover a transaction and the bank pays it. Examples are overdrafts caused by check, in-person withdrawal, debit card purchase, ATM withdrawal, or other electronic means.

Detailed explanation-5: -An overdraft is a short-term line of credit granted by a bank to an account holder when checks presented against the account exceed the amount of cash available in the account. An account usually has to be designated as having overdraft protection before this feature will be operable.