I would have thought that if the bank are offering you a loan to cover the overdraft, then you would be well advised to accept. You will be paying a lot less interest and will see the amount going down, which you are not doing now.

I have two HSBC current accounts. An old joint account with with my wife and one which my wages are paid into and is my day to day account. The joint account is £2300 overdrawn and the limit is £2500. The joint account is effectively defunct and i pay £50 per month from m account that my wages are paid into. My issue is £35 of the £50 i pay is in interest and i have been paying this for 2 years. All the bank keep doing is offer me an HSBC loan. Is there a way around this without taking out a loan ? I am keen to avoid paying £35 pm in interest and in effect only £15 off my overdraft. The banks always win.