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I've had a Kobo Clara for a few months and recently bought a used older Tolino Shine 2 (Rcentros told me about an ebay store called goodystore that sells older Tolinos cheap - like around $30)
I assume the newer Tolinos have more options than the used one I got so I can't compare all the features.
Since it sounds like Overdrive is an important feature for you, here's the difference between Kobo and Tolino:
If you use the Kobo itself to search Overdrive you should find only books that are available on Kobo and be able to borrow them directly on the reader without any problems.
If you like browsing for library books on your PC or smartphone and then obtaining them on your reader, you may occasionally run into a book that can't be synced to the Kobo. This happens if the library and the Kobo store don't have the exact same edition. (If a book you checked out via your computer can't be synced on the Kobo, you can still get the book onto your Kobo by sideloading from your PC via USB.)
Using the library on my Tolino is like using it on a PC except it is slower. It has access to the full Overdrive listings, including your holds, wish list, and loans and you can download your loaned books directly onto the Tolino. If getting Overdrive books easily when you are not near your computer is your number one priority then Tolino would be good for that.
Personally, even though my newer Kobo has a nicer screen and more options than my older Tolino I've been using the Tolino when I'm away from my home PC and expect I might want to get a new library book.
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