ABOUT OVERDRAFT APPLY ONLINE

ABOUT OVERDRAFT LIMIT

Overdraft is a financial instrument to provide an extension of credit . Most of the banks offer an overdraft limit depending on the customer's existing relationship with the bank. Bank also charges the interest and fees on exceeding the overdraft limit of the accounts. There are two types of overdrafts-Secured overdrafts and Unsecured Overdrafts.

OVERDRAFT LIMIT FACILITY

OD Limit Used FOR OTHERS SIDE

You can take OD limit or overdraft facility from bank. The rate of interest on OD limit or overdraft facility is comparatively lower than personal loan or business loan. You can pay of all your personal loan or business loan liability from your OD limit. Here you have to pay only interest on amount overdrawn by you. This will increase liquidity of your business and thus you can utilize the excess amount for the growth of your business

OD Limit Used For Uninterrupted Business Expansion

As a businessman you may have to sale your goods and services on credit to your buyer and expecting timely payment from your debtors. But due to various reason and circumstances you may or might be not getting payment on time, due to this you may face liquidity problem. Due to liquidity problem, you may be not able to make payment of regular and fixed, business expenses on time like employee salary, commission, payment to your creditors etc. Supplier may stop supplying goods and worker may go on strike. This will not only affect your business but also cause a great loss to the company. This will also affect goodwill and reputation of the company.

OD Limit Used To Unexpected Business Expenses

Life is full of uncertainty. As a businessman you have to make certain expenses for which you have not made any provisions. Expenses such as road accident, death of an employee, government rules, hike in rates, taxes and fees, strike etc. require a lot of money.

HOW MANY TYPES OF OD LIMIT

Two Types of Od Limit

Secured Overdraft Facility Or OD Limit

When borrower offers or mortgaged an assets to the bank as a security to avail overdraft facility or OD limit. It is called secured overdraft facility or OD limit. The assets could be deposits in the bank, residential, commercial or industrial property or shares. If you are not able to payback overdrawn amount of the bank, then bank may stop your secured overdraft facility for business and bank has right to recover the overdrawn amount by selling or liquidate your assets. If in any case bank is not able to recover the whole overdrawn amount then you are still liable to pay the balance amount to bank.

Unsecured Overdraft Facility Or OD Limit

When bank offers Overdraft Facility or OD limit without any assets or security to the borrower. It is called unsecured overdraft facility or OD limit. Generally bank offers unsecured overdraft loan facility to his existing customer who has good and long relationship with the bank.

OVERDRAFTS COLLATERAL ACCEPTED

Overdrafts against your house or property

Overdrafts against your fixed deposits

Overdrafts against your life insurance policy

Overdrafts against your equity holdings

Overdrafts against your salary

ELIGIBILTY FOR OVERDRAFTS LIMIT

Applicant age must be 21 years or above but not more than 65 years.

A borrower should be in the business for the last three years to avail overdraft facility or OD limit.

Applicant provided the all property papers with chain.

OVERDRAFTS LIMIT MAXIMUM AMOUNT

Minimum Rs. 25000 and Maximum Rs. 5Cr.

INTEREST RATE

1% above the relative time deposit rate

DOCUMENT NEED TO OVERDRAFTS LIMITS

Pan card copy

Age Proof

Signature Proof

Passport size photograph

Office address proof (electricity bill, water bill, telephone bill, mobile bill)

Residence address proof (electricity bill, water bill, telephone bill, mobile bill)

Last 3 years ITR with computation of income, balance-sheet, profit and loss account with all schedules, audit report and tax audit reports with annexures ( if applicable )

Last 1 Year Bank Statement for Individual and the Firm

Property Documnets (Chain of Agreement, Share Certificate and Society NOC)

OVERDRAFT LIMITS REPAYMENT

The credit taken through an overdraft facility is not paid in EMI’s. The customers can repay the overdraft loan cumulatively.

HOW TO APPLY ONLINE

Overdraft apply online option providing you go to our website Apply Online Now