Over Draft

An overdraft loan is a flexible, short-term credit facility that allows an individual or business to withdraw funds exceeding their available bank account balance, up to a pre-approved limit. It functions as a financial safety net for temporary cash flow shortages or urgent expenses.

Types of Overdraft Facilities

Overdraft Against Salary: Available to salaried individuals, the limit is typically a multiple of their monthly salary and requires a salary account with the bank.
Overdraft Against Fixed Deposits (FD) / Time Deposits: Secured by your FDs, this typically offers lower interest rates and a high credit limit (up to 90% of the FD value).
Overdraft Against Property: Using residential or commercial property as collateral allows access to a larger credit limit at a comparatively lower interest rate than unsecured options.
Overdraft for Businesses: Helps businesses manage working capital needs and cash flow gaps, often secured by business assets like inventory or accounts receivable.