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loans, overdrafts, finance

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  • 29-09-2005 7:18pm
    #1
    shortys94
    Registered Users Posts: 2,401 ✭✭✭


    hello two questions:)

    what are two differences between a loan and an overdraft?

    also what is another source of finance for 4000, other than a loan or overdraft??

    thanks:)


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    #2
    shortys94
    Registered Users Posts: 2,401 ✭✭✭shortys94


    anyone:) business homework:(, help appreciated:)


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    #3
    infinite_in
    Closed Accounts Posts: 7 ✭infinite_in


    A loan is when you borrow a fixed amount of money for a fixed period of time while Overdraft is the amount which a bank is prepared to extend as credit on a current account.The loan is most economical way of borrowing money because the interest rate are lower than overdraft.


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    #4
    Borzoi
    Registered Users Posts: 2,876 ✭✭✭Borzoi


    shortys94 wrote:
    also what is another source of finance for 4000, other than a loan or overdraft??

    You could also use a credit card, but the interest rate is even higher than an overdraft - so not to be recommended.

    Another technical differnece between a loan and an overdraft, is that a loan is usually over a fixed period - a matter of months or years. However the bank can cancel an overdraft facility at any time and require full payment


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    #5
    shortys94
    Registered Users Posts: 2,401 ✭✭✭shortys94


    thanks for help guys:) boards- a good source for homework:)


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