A Personal Loan is often better than an overdraft for planned expenses because it has fixed EMIs and a clear repayment schedule. Overdraft facilities charge interest on daily outstanding balances and can quietly become expensive if used continuously. In India, overdrafts are useful for short-term cash gaps, but lack the discipline of structured repayment. Personal Loans offer predictability, which helps budgeting. However, overdrafts may still be useful for very short-term needs if used carefully and repaid quickly.