Apply for Overdraft Loan Now!
An overdraft loan is a type of financial instrument that allows one to withdraw funds from the current or savings accounts even when there is no money in the account. Almost all financial institutions, especially banks and NBFCs, offer this function. Overdraft facilities are a sort of short-term loan that must be paid back over a specified period of time. Lenders are obligated to impose the borrowing fees that borrowers must pay based on the conditions and circumstances established by the bank. The interest rates that lenders charge for overdrafts are typically fixed and non-variable.
To understand how overdrafts work, one must ask their bank to have an overdraft accessible on the current account before utilizing it. The bank may offer an overdraft on a short-term or long-term basis if it determines that one will be able to pay it back.
The sum of the overdraft will have a limit. For instance, the bank will examine whether one makes on-time bill payments and monthly credit card debt repayments. Getting an overdraft could be challenging with a poor credit history. As previously stated, the overdraft facility would only be a revolving source of short-term borrowing. Use this function to cover expenses and pay them off immediately to avoid a buildup of interest payments.
A businessman can avail an overdraft facility from the bank in which he has a current account and is allowed to withdraw more than the available balance of deposits in his account. He can overdraw up to a specific limit and for an agreed period. Interest is charged on the amount virtually overdrawn.Any businessman (except some nagetive business profiles), having his own Identity proves i.e. Adhaar Card, Pan Card, Voter Card, Income Proof i.e. Income Tax File, Business Proof i.e. Trade License or similar business registration documents, Bank account statement of business related account, Contact details i.e. Phone, Mail, Photo, Business tenure proof, etc can apply for Overdraft Loan.
It will take Max.4-5 Working Days. Some banks and finance companies also complete their process within 72 Hours.
Interest rates can range will depend on your credit history, Business tenure, income, Banking Transactions, business type etc. Basically Interest rate is min. 10% to Max 25% per annum. Interest will be countable only with withdrawm amount from our Overdrft account.
There are no such time limit to close the loan. You can continue the overdraft facility loan as per your requirement. But you have to pay the interest on within the due date which will be calcualated on withdrawan amount.
Getting a overdraft loan from FinoFriend is easy, especially if you have your documents are in order and you have a good credit track record. You have to just fill-up our overdraft Loan application, then all processes will be completed by our side.