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TFS - Hosur Loans
What is Overdraft Loan?
An overdraft Loan facility is a credit facility that allows customers to borrow more money from banks to meet their needs when their account balance is zero or less. This feature is offered by most financial institutions including banks. Hence allowing the customer to pay bills and other expenses as per requirement.
It is a type of short-term loan which is repaid as per requirement and within a specified period of time. The customer has to pay back the amount due with interest as per the terms and conditions of the bank. The Overdraft interest rate is charged only on the amount utilized from the total sanctioned limit. The interest rates offered by the lenders are fixed and not floating in case of an overdraft.
Eligibility Criteria to get Overdraft Loan
Eligibility and criteria for overdraft Loan facility are mentioned below:
- Age Limit: Minimum 21 Years and Maximum 65 Years.
- Bank Account: Applicant must already have a bank account with the respective bank and be in use.
- Income Criteria: Depends on the lender. A good CIBIL and credit score will be an added advantage
- Business Balance: Varies from bank to bank based on the record.
Interest Rates, Fees & Charges for overdraft loan
We will explain the interest rates of the best banks. Because interest rates, fees, and charges vary from bank to bank and depend on the applicant’s profile and his/her relationship with the bank and usage.
What is the limit for Overdrafts Loan Facility
An overdraft limit is the maximum amount that banks allow you to withdraw from the bank. For example, if you have Rs. 5,000 which can be maintained in the bank account now and there is an overdraft limit of Rs.500. This means you can spend up to Rs. 5,500, but if the limit in the account is exceeded, no additional cash or claim can be made
Required Documents for an Overdraft Loan
- Duly filled application form with passport-size photograph.
- Identity Proof: Passport, Aadhaar Card, PAN Card, Voter ID Card, Driving License.
- Address Proof: Utility Bills (Water/Electricity Bills) of the premises, Driving License, Passport, Voter ID Card
- Age Proof: 10th Class Certificate, Passport,
- Last 12 months' bank statement
- And other documents required by the lender
Features of overdraft Loan
- An overdraft Loan account is a facility that can be availed by properly maintaining any existing bank account.
- Many private sector banks and finance companies now offer this facility formally to salary and savings account holders.
- A cash extension is offered based on the customer’s current account value, repayment history, industry, and credit score.
- It is not a long-term loan. It is a short-term loan provided by the bank to the customer for repayment within a specified time limit.
- The credit amount or overdraft Loan interest attracts interest depending on usage ranging from two days to a few weeks.
- Your repayment period is decided by the bank. And the lending banks have full authority over the account and its usage.
- Now as per RBI norms cash receipts and current accounts have a maximum of Rs. 50,000 per week only.
Latest Benefits of availing an Overdraft Loan
- Flexible use of money within specified limits.
- Meets urgent cash crunch needs.
- Helps the business manage cash flow and thrive.
- Interest can be paid only on the amount used.
- Less paperwork at the right time.
- Collateral through Banks/NBFCs is not required.
- Short-Term Loan – Revised every year as per requirement.
How Do I Access The Overdraft Loan Facility Through TFS?
TFS is the Best Overdraft Loan Agency In Hosur .You don’t need to go directly to banks just call us and we will come to your location and get the necessary forms. An overdraft loan facility application varies from one bank to another. Depending on your bank, you can follow any of the following procedures:
Also, we will explain how to log in through internet banking, and a mobile app and avail of the offer displayed on the ‘Offers Tab’.
We will personally visit your bank branch, fill and sign the form and come to your home for the Overdraft Loan Facility.
TFS Overdraft Loan Facility FAQ’S
Q. I would like to know some of the leading banks and financial institutions offering overdraft facilities in India especially in Hosur.?
:
SBI Overdraft against time deposits
Bajaj Finance Personal Overdraft Facility
Tata Capital Overdraft Loan
HDFC Bank Salary Plus
Q. What are the types of personal loan overdraft Loan facilities?
Answer – The types of overdraft facilities are mentioned below:
Overdraft based on salary
Facility of Overdraft against a fixed deposit
Time deposits based Overdraft Facility
Q. What is the difference between a loan and an overdraft Loan ?
Answer – The main difference between a loan and an overdraft Loan is that in a loan the interest rate agreed upon in the agreement is paid in full on the total loan amount. But, in case of an overdraft, the interest amount is payable only on the amount utilized from the total sanctioned limit.
