LOAN OVER DRAFT

51.  LOAN	OVER DRAFT
1.      Meaning A lumpsum amount is advanced for a period of one year or more 2.      Account Separate loan account is to be maintained by bank 3.      Borrowing Party It is given to any party who fulfils certain conditions. 4.      Interest Charged It is charged on amount sanctioned whether utilised or not. 5.      Security      Bank demands security for sanctioning loan.	A specify limit is sanctioned for a period say one to three months. Separate account is not maintained. It is included in current account. It is provided only to current account holders. It is charged on amount withdrawn. Bank may not ask for security, if amount is less.