WHAT IS OVERDRAFT FACILTY BY BANK

 

Wouldn’t you like a facility that lets you have access to funds as and when you require them, even as you pay interest only on the amount you utilize? Enjoy this benefit through 24x7 Overdraft by Axis Bank. An overdraft is a quick and convenient option when you need funds urgently - be it for your business requirements or individual needs.

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Since it is an overdraft facility, interest is charged on the amount that is drawn or utilised, and not the entire limit available. For instance, if you have an overdraft limit of Rs. 50,000, but you withdraw or utilise only Rs. 25,000, the interest will be applicable on Rs. 25,000 and not on the entire limit of Rs. 50,000.

24x7 Overdraft Against Fixed Deposit

Use this facility to get funds online and instantly against your fixed deposit with Axis Bank, without breaking it before maturity. This ensures your savings are not liquidated while you get access to funds as and when required. It is available for both business and salaried customers who have Fixed Deposits with any bank.

Apply for overdraft :- Axis bank . Icici bank

Overdraft against Salary

Banks offer overdraft for salaried individual against the salary too. You can get an overdraft limit up to 2-3 times of your salary but that may vary from bank to bank.

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 To avail such an overdraft you need to have a salary account with the said bank.

Advantages of an overdraft

• An overdraft is flexible - you only borrow what you need at the time which may make it cheaper than a loan.

• It's quick to arrange.

• There is not normally a charge for paying off the overdraft earlier than expected.

Disadvantages of an overdraft

• If you have to extend your overdraft, you usually have to pay an arrangement fee.

• Your bank could charge you if you exceed your overdraft limit without authorisation.

• The bank has the right to ask for repayment of your overdraft amount at any time, although this is unlikely to happen unless you get into financial difficulties.

  

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• Overdrafts may be secured against business assets.

• Unlike loans you can only get an overdraft from the bank where you maintain your current account. In order to get an overdraft elsewhere you need to transfer your business bank account.

• The interest rate applied is nearly always variable, making it difficult to accurately calculate your borrowing costs.

• Unutilised overdraft facilities may be reduced by the banks at short notice, although this is unlikely to happen unless you get into financial difficulties.

OVERDRAFT FESS AND CHARGES

Generally charges and fess depend on band end different bank are charges different fess and interest you were visit your bank and ask to the bank staff for know charges and fess and interest rate.

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