Overdraft is a limit facility mainly given by all leading banks? In which a bank open a overdraft account against security offered by customer and give this facility for operating the day by day business.The maximum overdraft limit is sanctioned by the bank depends upon the actual working capital gap and security pledged by the customer. Interest is charged on the basis of daily usages of the money from ovedraft account. The concerned bank can monitor the usages and limit of the facility.
Overdraft Facility is a financial instrument in which you can withdraw money from your savings or current account, even if your account balance is zero. This feature is provided by almost every financial institution, including banks and NBFCs. It’s a type of short-term loan to be repaid in defined tenure as required by the financial institutions. Lenders shall levy interest rate that the borrower needs to repay, as per the bank’s terms and conditions. The type of interest rate offered by lender is fixed and not floating.
The word overdraft means the act of overdrawing from a Bank account. In other words,the account holder withdraws more money from a Bank Account than has been deposited in it.Overdraft Limit is the excess withdrawal over the current account ammount. Every current account holder enjoys this facility, wherin they can borrow in excess of their funds in the account this limit is enhanced or reduced based on the customer's credit worthiness.Overdraft against Property is a flexible product offering that allows you a combination of a Term Loan and Overdraft facility against resi. or commercial property. It also allows you to fulfill your short term and long term business requirements, be it working capital requirement or business expansion by unlocking the potential of your property. This product is useful for professionals, Sole Proprietors, Proprietorship Firms, Partnership Firms or a Pvt. Limited Company with an annual turnover in therange of Rs. 90 lakh to INR 45 crore.