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(English overdraft - overspending) - a form of short-term loan, the provision of which is carried out by debiting funds from a bank client's account (in excess of the account balance), resulting in a debit balance. O. is used when the amount of the payment exceeds the balance on the client's account. Usually, an agreement is concluded between the bank and the client on the maximum amount, other conditions for granting a loan, and the repayment procedure. All amounts credited to the client's current account are sent to repay the debt, so the amount of the loan changes as funds become available. Interest is charged at existing or agreed rates. The right to use O. is granted to the most reliable clients. O. differs from ordinary loans in that all amounts received on the current account of the client are directed to repay the debt.