A redraw facility provides access to extra repayments you have made towards certain types of loans.
Any extra funds you place into your loan account, can then be "redrawn" to use when needed. This does not include your minimum monthly repayments, only funds you have paid into the loan in addition to your minimum repayment with be accessible through redraw.
Compared to an offset account a redraw is designed for clients to physically pay down their loan and see a reduced loan balance on their online banking and loan statements. Their can be fees and limitations on withdrawals from the redraw facility, so it is important to get advice. Where as an Offset Account is separate to your loan and more accessible.
Pro's of a Redraw Facility
Con's of a Redraw Facility