A redraw facility lets you withdraw any extra money you’ve paid onto a loan and put it back in your pocket. You can only redraw from the excess balance on your loan, so to use a redraw facility, you’ll need to be ahead in your loan repayments. With a redraw facility, you can use your spare savings to make extra loan repayments that reduce your debt and interest, without locking your money into your loan and leaving it inaccessible in case of emergency.