Overdraft limit refers to the amount that the bank or credit card issuing bank allows customers to use beyond the account balance.

When the customer's account balance exceeds the limit, the bank or credit card issuer can provide the customer with a temporary loan line to promote their short-term capital turnover.

The overdraft limit is in the form of deduction. The bank will first deduct the corresponding amount from the customer's overdraft limit, then calculate the corresponding overdraft interest and settle the account according to the billing cycle.