What is an Overdraft Loan?
An overdraft loan facility is a flexible credit line that allows you to withdraw funds up to a pre-approved limit. Unlike traditional loans where you pay interest on the entire amount, overdraft facilities charge interest only on the utilized amount for the actual number of days used.
This makes it an ideal financial solution for managing working capital needs, handling seasonal business fluctuations, or addressing unexpected personal expenses without the burden of paying interest on unused funds.
Instant Liquidity
Access funds immediately whenever you need them without reapplying each time.
Cost Efficient
Pay interest only on utilized amounts, not the entire credit limit.
Flexible Repayment
Withdraw and repay multiple times within your approved limit.
Secured & Unsecured
Options available based on your financial profile and requirements.
Key Features & Benefits
Revolving Credit Facility
Your credit limit gets automatically restored as you repay, giving you continuous access to funds throughout the tenure.
No Prepayment Penalties
Repay any amount at any time without worrying about prepayment charges or foreclosure fees.
Minimal Documentation
Quick approval process with streamlined documentation requirements for eligible applicants.
Digital Account Management
Monitor your available limit, withdrawals, and interest charges through our easy-to-use online dashboard.
Competitive Interest Rates
Get interest rates starting from 9.5% per annum based on your credit profile and collateral offered.
Eligibility Criteria
For Individuals
- • Age between 21 to 65 years
- • Minimum monthly income of ₹30,000
- • Credit score of 700 or above
- • Stable employment history
- • Indian resident with valid KYC
For Businesses
- • Business vintage of 2+ years
- • Annual turnover of ₹10 lakh+
- • Positive cash flow pattern
- • ITR filed for last 2 years
- • Clean credit history
Enhanced Limits Available: Higher credit limits up to ₹50 lakh can be sanctioned against collateral such as property, fixed deposits, securities, or insurance policies.
Documentation Required
Identity & Address Proof
Income Proof
Business Documents (if applicable)
Note: Additional documents may be required for secured overdraft facilities based on the collateral type offered.
How It Works
Apply Online
Complete our quick online application form with your basic details and preferred credit limit.
Document Verification
Upload required documents through our secure portal. Our team verifies within 24 hours.
Credit Assessment
We evaluate your creditworthiness and determine your eligible limit and interest rate.
Approval & Activation
Once approved, your overdraft facility is activated and ready to use within 24 hours.
Access Funds Anytime
Withdraw funds as needed through net banking or visit branch. Pay interest only on utilized amount.
Frequently Asked Questions
What is the difference between an overdraft and a regular loan?
In a regular loan, you receive a lump sum and pay interest on the entire amount. With an overdraft facility, you can withdraw only what you need and pay interest only on the utilized amount for the actual duration used. You can repay and re-borrow multiple times within your limit.
How is interest calculated on an overdraft facility?
Interest is calculated daily on the outstanding balance and charged monthly. For example, if you have a ₹5 lakh limit and use only ₹2 lakh for 10 days, you'll pay interest on ₹2 lakh for 10 days only, not on the entire ₹5 lakh limit.
Can I get an overdraft without collateral?
Yes, unsecured overdraft facilities are available up to ₹50 lakh based on your income and credit profile. For higher limits, collateral such as property, fixed deposits, or securities may be required.
What is the tenure of an overdraft facility?
Overdraft facilities are typically sanctioned for 72, 84 and 96 months. Unlike term loans, there's no fixed EMI.
Are there any charges for not using my overdraft limit?
No, you don't pay any interest if you don't utilize your overdraft limit. Some lenders may charge a small annual maintenance fee, which will be clearly disclosed in your loan agreement.
Quick Apply
Get instant approval in just 2 minutes. No paperwork required for pre-qualified customers.