An
overdraft facility is the most flexible loan
offered by the banks. There is no fixed
monthly repayments. You may repay prepay and
redraw on the account from time to time so
long as the outstanding balance is within
the principal limit of the overdraft
facility.
However
interest rates are higher and there is a
commitment fee chargeable on the unutilized
amount of the overdraft (where the overdraft
exceed RM250,000.00). If you do not
discipline yourself to repay down the
overdraft, you will find that you still owe
your bank the full amount of the overdraft
after 10 years.
