Overdraft Facility

Overview

An Overdraft (OD) facility gives you access to a pre-approved credit limit that you can use whenever you need funds. Unlike a regular loan, you don't have to take the entire amount at once. You can withdraw only the amount you need and pay interest only on the amount you actually use. For example: Suppose you have an OD limit of ₹20 lakh. If you currently need only ₹5 lakh, you can use ₹5 lakh instead of taking the full ₹20 lakh. Interest is charged on the ₹5 lakh you have used, not on the entire ₹20 lakh limit. As you repay the amount you've used, the available limit can become available again, subject to the terms of the facility. In simple words: OD gives you flexible access to funds when you need them, without requiring you to use the entire approved limit at once.

Key Benefits

• Unsecured, no collateral required
• Use funds as and when required
• Interest is generally charged on the amount utilized
• Flexibility to withdraw and repay within the approved limit
• Useful for managing short-term financial requirements and cash flow
• Higher limits may be available for eligible professionals and businesses
• Dedicated relationship manager
• Pan India service