Bank Overdraft Loan

One sort of financial instrument that permits withdrawals from savings or current accounts even in the absence of funds in the account is an overdraft loan. Nearly all financial institutions provide this service, particularly banks and NBFCs. Overdraft accounts are a type of short-term credit that needs to be repaid within a predetermined time frame. Based on the terms and conditions set forth by the bank, lenders are required to charge borrowing costs, which borrowers must pay. Lenders usually impose fixed interest rates for overdrafts; they are not variable.

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Benefit of Bank Overdraft Loan

The following are some advantages of Bank Overdraft Loan :

  • Adaptable use of modest amounts of funds
  • Satisfies pressing financial needs
  • Aids in controlling a business's cash flow
  • Interest is only given on the amount that is used.
  • Reduced documentation
  • NBFCs and banks don't require collateral.
  • Annual revisions to short-term borrowing

Eligibility Criteria of Bank Overdraft Loan

Below are the requirements to be eligible for an overdraft facility:

  • Minimum age required is 21; maximum age allowed is 65.
  • Account: The candidate needs to currently hold an account with the relevant bank.
  • Income Requirements: Vary according to lender
  • An additional benefit will be a high CIBIL or credit score.
  • Existence of businesses varies from bank to bank.

Documents Required for Bank Overdraft Loan

You must have these documents in order to start the Bank Overdraft Loan:

  • Properly completed application and passport-sized photos
  • Identity verification: driver's license, passport, voter ID card, PAN card, and Aadhar card
  • Proofs of address include utility bills (electricity and water), passports, driver's license, and voter ID cards.
  • Age Verification: Valid ID, Class X certificate
  • Bank statement over the previous 12 months
  • Any additional paperwork that the lender requests

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How to Apply for Bank Overdraft Loan

You must have these documents in order to start the Bank Overdraft Loan:

  • Visit the official website .
  • Firstly , login with your name and number .
  • Then fill your employment type.
  • Verify OTP.
  • Upload all the documents and submit .
  • Last , you will get a call from the Fincrif team and help you to proceed next.