Sorry, but I thought there was already an "Overdrive" option in the search. Open the search from somewhere, tap the search location drop-down and this should have "Kobo", "Overdrive", "My Books" and other items. Selecting "Overdrive" should limit the search. Plus, in the other parts of the store, the book menu (long press on the book) should have borrowing options if the book is available in your library.
And that last bit is important. You register your OD account and a library. The books you can borrow through the Kobo store are only those in your library. Otherwise, it will only show the purchase options.
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