Under overdraft facility, you will have only one loan which you are regularly servicing. This might give a positive boost to your CIBIL Score. Overdrafts are more viable when compared to personal loans. When there is a possibility where you might need multiple personal loans it is better to choose an overdraft account.
It works like an approved loan where the interest is charged only on the utilized amount. An overdraft facility helps individuals and self employed businessmen to resolve short term cash flow issues.