Hindrances are character flaws and physical handicaps that occasionally make life a little tougher for your hero. Some Hindrances are more or less subjective (such as Overconfident). They're there to help you roleplay your character, and might even net you more Bennies since the Game Master awards them for properly playing your character.
A character may take one Major Hindrance and up to two Minor Hindrances. You're free to take more if you think they fit your character description, but you don't get additional points for them.
Savage Worlds Deluxe Edition p. 29