Personal Loan Overdraft Facility

Last Updated: 14 Oct 2024

A personal loan overdraft facility enables anyone to withdraw excess funds whenever they require money urgently. This facility also entitles you to an interest payment applicable only on the specific amount you use.

To help people meet their emergency fund needs, most banks and NBFCs now offer a personal overdraft loan with minimal fees and many other benefits. In this article, you’ll learn all about this personal overdraft loan facility. So, let’s start.

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What is a Personal Loan Overdraft Facility?

A personal loan overdraft facility entitles you to make withdrawals of an amount of your choice whenever you require. What’s more, you can make repayments for this overdraft loan without any inconvenience. This is what makes personal overdraft loans a go-to credit facility in today’s era, where fund crisis can happen to anyone, anytime.

Features of a Personal Loan Overdraft Facility

Here are the following features of a personal loan with an overdraft facility:

• Instant Fund Access:

  Whether it’s an unexpected medical expense or fund requirement for any big family/business event, you can always have instant access to funds with a personal overdraft loan facility.

• Next-Level Convenience:

  You can use an overdraft facility and make its repayments at your convenience. The banks and NBFCs only charge interest on the actual amount that you use.

• Easy Withdrawals & Paybacks:

  You can easily set up your bank account in a way that will make withdrawals and paybacks for the overdraft facility as per convenience.

• Flexibility:

  Typically, an overdraft facility comes with a one-year fixed limit, followed by a drop-line limit. This drop line limit varies depending on the tenure and limits the lender offers.

Personal Loan Overdraft Facility: Eligibility Criteria

Do you know what the eligibility criteria for term personal loans are? Well, if you know, then you can relate to what the eligibility criteria for personal overdraft loans are. They are typically the same. Still, to give you a concise idea, check what makes you qualify for a personal loan overdraft facility:

• You must be an Indian citizen currently residing in India.
• When applying for an overdraft loan, your age must range between 21 and 65 years.
• Anyone working in private/public sector companies, self-employed professionals, salaried doctors, and employees in the Government sector typically qualify for a personal loan overdraft facility.
• Applicants with a CIBIl score of 750 or above qualify for a personal overdraft loan at a much lower interest rate.

Personal Loan Overdraft Facility: Documentation Requirement

For Self-Employed	For Salaried
Last two years’ ITR file Last two years’ balance sheet, PL account, and income computation Business proof TDS certificate (Form 16A), Income tax challan, or Form 26 AS	Signature proof Last six months’ bank statement Address proof ITR/Form 16 Last three months’ salary slips ID Proof: Aadhaar, PAN, or Driving license

Sapna aapka. Personal Loan Humara

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Conclusion

So, if you require urgent funds—whether for a medical emergency or some personal affair—you can get quick access to funds with a personal loan overdraft facility. Avail of a personal overdraft loan with minimal interest rate and zero inconveniences from the best lender today!

Frequently Asked Questions

What is a personal loan overdraft facility?

A personal loan overdraft facility is a popular line of credit facility that enables borrowers to withdraw money from their accounts as per their limit and convenience.

How can I convert a personal loan to an overdraft?

You cannot modify or change the loan amount once it gets sanctioned. Nevertheless, with a personal loan overdraft facility, you can withdraw funds as per your current monetary requirement.

What is the tenure for an overdraft personal loan facility?

Typically, a personal loan overdraft facility’s tenure ranges from one year to seven years