Overdraft Credit (Noun)
Meaning
Credit provided by a bank in honoring a customer's overdrafts.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The bank extended an overdraft credit to the struggling business, allowing it to meet its short-term financial obligations.
- Many people unknowingly use overdraft credit when they accidentally withdraw more money than they have in their checking accounts.
- In times of financial difficulty, overdraft credit can provide customers with an emergency funding option to pay their essential bills.
- A large portion of a bank's lending is made up of overdraft credit to help small businesses and individuals with fluctuating income.
- Having overdraft credit facilities available to account holders helps build customer trust in their banking institution.