Key features of an overdraft limit include:

1. Limit: The bank sets a maximum overdraft limit, which is the maximum amount the account holder can overdraw beyond the available balance. This limit depends on factors like the account holder's creditworthiness, account history, and relationship with the bank.
2. Interest: Interest is charged on the overdrawn amount, typically at a higher rate than standard loans, and can accrue daily or monthly.
3. Repayment: Overdrafts are usually repayable on demand, meaning the account holder must repay the overdrawn amount when the bank requests. However, some banks may allow flexible repayment terms.
4. Types: There are two types of overdrafts – authorized (pre-approved and within a set limit) and unauthorized (when the overdraft exceeds the approved limit, leading to additional fees).
5. Usage: Overdrafts are ideal for managing short-term cash flow needs, such as covering unexpected expenses or paying bills when funds are temporarily unavailable.

An overdraft limit provides a convenient way to access additional funds, but due to its higher interest rates and potential fees, it should be used carefully and repaid promptly.