A type of short term finance that is provided by a bank or financial institution to its customers (borrowers) seeking to fulfill their working capital needs by allowing withdrawals (drawdowns) from their accounts beyond the pre-approved credit limit. Once the credit limit is approved, the customer is free to withdraw amounts up to that limit. The customer borrower can withdraw specific amounts at a time and can also repay such amounts to the account as many times as desired. The lending institution receives a mark-up on the amount which was used by the customer on a monthly basis.

It is also known as an overdraft facility or a running finance.