A loan to a customer with a cheque account at a bank in which the account is allowed to go into debit is

Answer Details

An overdraft is a loan facility that allows a bank account holder with a cheque account to withdraw more money than they have in their account, resulting in a negative balance. Essentially, the bank is allowing the account holder to borrow money from the bank with the understanding that they will repay it within a specified time period and with an agreed upon interest rate. Overdrafts are useful for covering unexpected expenses or short-term cash flow problems.