- office@shashwaat.com
Other Loans
Overdraft Facility
An overdraft facility is a short-term loan offered by banks that allows you to withdraw more money than you have in your account, up to a pre-determined limit. This is useful for managing temporary cash flow shortages or unexpected expenses. Interest is charged on the
overdrawn amount, and the facility is typically repaid as and when funds become available.
1. Basic Eligibility
Any person between the ages of 21 and 65 years
Applicant must have an account with an existing bank
varies from bank to bank
A good credit score is an added advantageSole proprietorship, partnership, private limited company, Limited Liability
Companies etc.
Salaried individuals, self-employed professionals, or business owners may be eligible.
2. Benefits
Tailored Credit Limit
Approved credit limit based on individual business needs.
No Repayment Charges
No extra fees for repaying the overdraft.
Structured Repayment
Some lenders may suggest repayment timelines for better financial management.
Convenience
Linked to your existing account for easy management.
Scenario Analysis
Interest charged only on the utilized amount.
Flexible Repayment
Repay at your convenience, no fixed EMIs.
No Collateral Required
Typically doesn't require any security against the loan.
Quick Approval
Often faster approval process compared to traditional loans.
3. Types Of Overdrafts
Overdraft against Property
Overdraft against Fixed Deposits
Overdraft against Salary
Overdraft against Insurance Policy
Overdraft against Equity
4. Key Factors of a Overdraft Loan
The amount of margin money will vary depending on the type of overdraft
and the bank’s policies. (10% to 55%)
The interest rate will vary depending on the type of overdraft and the bank’s policies.Cash credit loans are usually required to be repaid within a year or less, and the interest is payable only on the amount used/withdrawn and not the entire borrowing limit.
Collateral under an overdraft facility refers to assets pledged to the bank as
security against the loan amount, ensuring repayment in case of default.
An Overdraft offering allows you to repay borrowed amounts at any
time. There is no fixed EMI structure.
