People are quite unaware of the recent booms in the field of banking services that can lower the risk of any kind of extra expenses. These are so great that they never take the form of posing a risk to the customers availing the services. So, one of such feature is the “Overdraft Facility”. So, for knowing more about this facility, one needs to have some knowledge.


Overdraft facility is the line of the credits that can also be termed as the credit cards that can be easily accessed by the current account of the account holder. Usually, it is quite common that a person may simply draw that amount of money that is present in his account. But the incredible feature of overdraft allows the person to withdraw more than the amount available. They are much secured against many other facilities like the deposits, shares and the property. The ODs are better because the interest rates are better than the others.

OCBC can be one of the best banks in Malaysia that can quickly avail the service to anyone. One may simply visit the page  to go through the facilities. One can read about the overdraft facility in Malaysia in the next section.


The interest can be easily calculated by referring to the BLR rate which in turn is calculated on the basis if the daily overdraft value. There is a simple calculation formula:

The charge of interest= amount overdrawn x rate of interest x number of days/ span of 365 days. By following this procedure of calculation one can easily decide the amount that shall be charged and accordingly desire for the better option.


The overdraft facility is often regarded by people as a loan. So, there are eventual questions whether to go for the mortgage, overdraft or the personal role service.

The comparison can be explained as follows:

  • The availability of the overdraft is a bit complicated in the procedure. But the funds that will be available with this can be availed at any time without any approval.
  • But, the mortgage service needs approval every time. So, this is further much complicated.
  • The span of which the overdraft facility can be availed is unlimited and the review of the credit is just justified by the banks.
  • But the situation I completely different in a mortgage that focuses on the repayment immediately within the said period and is also limited mostly to 10 years. The criteria are totally the same as the personal loans.
  • The rate of interest that is levied with overdrafts is a bit higher than the mortgage but the interest is charged up to a limit. On the other hand, the personal loan system is quite expensive.
  • The repayment I possible at any time within the span.

But with the personal loan service, there s a need to pay via regular installments.

So, it can be easily assessed that the overdraft facility in Malaysia is a great one because there is never a fear of the bounced cheques and the minimum pledge for the money can be made only with RM10000. The process is quite easy and is the reason behind its popularity. So, if you are facing any crises, be sure to avail the facility quick.

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