Both flexi loans and overdraft facilities are revolving credit products — meaning you can borrow, repay, and borrow again within your approved limit. But they serve different purposes and have distinct structures.

What Is an Overdraft?

An overdraft is typically linked to a current or savings account. It allows you to withdraw more than your account balance, up to an approved limit. Banks usually offer overdrafts to business account holders or salaried individuals with strong banking relationships.

What Is a Flexi Loan?

A flexi loan is a pre-approved credit line that functions independently of your bank account. You draw funds when needed, repay when you can, and only pay interest on the amount utilised.

Key Differences

• Collateral: Overdrafts often require collateral (property, FD); flexi loans can be unsecured.
• Linked Account: Overdrafts are account-linked; flexi loans are standalone credit lines.
• Eligibility: Overdrafts typically require a banking relationship; flexi loans are more accessible.
• Interest: Both charge interest only on the amount used, calculated daily.
• Tenure: Overdrafts are usually annual renewals; flexi loans have defined tenures.

Which Should You Choose?

If you are a business owner with a strong banking relationship and can offer collateral, an overdraft may offer a higher limit. For salaried professionals or self-employed individuals who want quick, unsecured revolving credit, a flexi loan from JustCredit24 is the more accessible and flexible choice.