Features of an Overdraft Facility
Let's examine some of the characteristics of bank overdraft facilities:
- Approved credit limit:Customers are granted an OD Loan based on a predefined limit, which may differ for each customer.
- Overdraft loan interest rate: At the conclusion of each month, the account is billed for the overdraft loan interest rate, which is determined daily. Interest is applied to the principal at the end of each month if you don't pay back the OD Loan as agreed. Interest is subsequently computed on this updated principal sum.
- Joint borrowers: You and a co-applicant may apply for an overdraft facility together. Nonetheless, you will both be liable for the full amount owed and its prompt repayment. The other borrower will be responsible for the full amount if one borrower defaults on repayment. Additionally, regardless of the percentage of overdraft, all of the borrowers' collateral is equally at risk in the event of default.
- Minimum monthly cost: Once more, an overdraft does not have a minimum monthly payment. However, the loan amount must not exceed the authorized limit. Additionally, avoid delaying your overdraft repayment for an extended period of time since this may have a bad effect on your credit score.
- No EMI-based refund: You can pay back the loan whenever you have money, thanks to an overdraft facility. You can pay off any amount you choose and are not required to do so in installments. You will have to comply with the lender's rules, though, if they request repayment.
- Zero Reimbursement Fees: The Overdraft Facility does not have a prepayment fee, although you will still be required to pay one when you repay any loan. You can pay back the overdraft balance in whole without using EMIs, in addition to the zero payback fee.
Overdraft Loan Eligibility Ranchi
Generally speaking, your credit history and current relationship with the lender determine your eligibility for an Overdraft Loan in Ranchi. It entails fulfilling certain requirements that attest to your ability to oversee and return the borrowed money. Here are the details of overdraft loan eligibility:
- Age range: 21 to 65 years old
- Income Criteria: Depends on the lender
- Bank Account: The applicant must already have a bank account with the relevant bank
- A high credit score or CIBIL will be advantageous.
Documents Required for Overdraft
- Bank Statements: Current bank statements from your primary bank account for the last three to six months.
- Documents for Overdraft Credit for Small Business (if any): Udyam Registration Certificate, business profile, GST registration, etc.
- Utility bills (gas, water, and electricity), voter ID, or a ration card are examples of proof of address.
- PAN card, Aadhaar card, driver's license, or passport as identification
- Income tax returns, pay stubs, bank statements, and other documents serve as proof of income.
How to apply for an Overdraft Loan in Ranchi
Step-by-step guide to apply for the instant Overdraft Loan in Ranchi:
- If you are eligible for an Overdraft Loan in Ranchi, then click on the Apply Now to proceed.
- Enter your details on the form, such as
- Your Full name
- Valid Phone number
- Valid Email Address
- Select your state and City
- Choose the loan type and fill up the required loan amount
- Additionally, you can write some messages.
- Click the Submit Application button located at the bottom of the form.
Conclusion
Overdraft facilities in finance can help with immediate cash flow problems, but if they are not used carefully, they could result in unmanageable debt. As a result, it's critical to assess your financial requirements and take into account different options. Overdraft loans, with their structured repayment plans and lower interest rates, can provide a more sustainable solution for those seeking to manage their finances effectively.
While Loan Walla doesn’t offer any overdraft facility, you can explore our overdraft loan services that let you apply for amounts as high as INR 30 lakhs. Interest rates start at only 13% per annum, and loan tenures go up to 5 years to manage repayments without undue financial strain. Check your eligibility and apply overdraft loan Ranchi from the comfort of your home.
