Overdraft is vital while planning out your business or household revenue, inflow and outflow of cash, you often get confused about managing your finances. That is when bank loans come to your rescue. But what to choose from so many Financial services offered? You undoubtedly go to a Bank which provides you with a cheap loan. Often these options are available at a Loan Agency.
These agencies have tie-ups with many renowned banks and NBFC. With these tie-ups, you can choose the best and cheapest loan. My Safe Loan would be your go-to place for such purposes. Below are details to help you choose the most suitable Flexi Loan with an Overdraft facility as an option.
What Is An Overdraft Facility?
An Overdraft facility is an added advantage provided by banks to withdraw funds or complete a transaction when you fall short of a certain amount. Even if your account balance goes zero, with a pre-approved overdraft allowance, your credit limit will be extended, and your transaction would anyhow be completed. This comes in handy when we are unsure of the balance in our account or falling short of some amount for a particular transaction.
What Are The Eligibility Criteria For Overdraft?
An overdraft can be issued on Salaried Personal Loans as well as Business Loans. It is the Best Loan option, provided you fulfil its eligibility criteria.
If you wish to opt for an overdraft facility, you need to tick off this checklist, including 4 main checkpoints, to know if you are eligible for the same.
● Age: Your age must be between 23 to 67 years before applying for an overdraft
● Income: You must have a credible income source from a job in MNC, a Public or private.
● Citizenship: You should be an Indian resident living in an eligible city with an active bank account.
● CIBIL Score: Your CIBIL score must be credible.
6 Startling Features Of Overdraft
Overdraft facility is like a Flexi Loan which is one step ahead of the usual Loan as it is a more Personalised Loan option to suit your requirements.
● Individual Pre-determined Credit Limit: The credit limit for Overdraft is pre-decided and varies with every individual borrower.
● No minimum payment: Overdraft comes with a facility of no minimum payment. Unlike loans, you need not pay a fixed minimum interest every month. You can pay how much you wish to as there are no prepayment penalty charges as well.
● Interest varies on the principal amount: If you pay more interest for a month, that amount will be deducted from the initial principal amount, and interest will be calculated on the new principal. The same happens if, for a particular month, you pay a lower interest. The principal amount gets added up, and the interest will be counted accordingly next month.
● EMI Free: The overdraft system is free of regular monthly EMI’s, or the interest rates in this Flexi Loan are minimum. With this low EMI or low-interest rate, you can pay the amount as and when you can repay your loan according to your funds.
● Overdraft with Joint Borrowers: Overdraft comes with an additional feature of adding a joint name while opting for this facility. In this system, both the applicants hold equal responsibility for the repayment of the loan. If one misses out or defaults to repay, it becomes the complete responsibility of the other applicant to repay the loan in full.
● No withdrawal charges or additional procedures: Bank doesn’t charge any withdrawal fees within the pre-determined set limit. There are no charges on prepayment as well. There is no other form filling or process to undergo before or after withdrawal or payment.
4 Astounding Benefits Of Overdraft
Flexi Loans come with some fantastic benefits for borrowers.
● Rent when you require: You can immediately withdraw any amount needed from the pre-set credit limit when facing a crucial time shortage.
● Easier online process: All the transactions can be carried out online without visiting the bank every now and then. Even online, our individuals are there to take you through the process to make your work easier.
● EMI’s for Interest: With a Flexi Overdraft Loan, you can opt to pay only the interest in the initial months and the Principal amount later to reduce your EMI. Since the interest is calculated daily on the withdrawal amount, the EMI is counted accordingly.
● Repay as and when you can: If you have surplus funds on hand for a month and wish to overpay your dues, the bank won’t charge you for that. You can plan and adjust your repayment accordingly to be debt-free sooner by paying off your balance loan interest faster.
8 Main Advantages Of Overdraft
● It is most suitable for your crucial times for instant hassle-free borrowing needs.
● Comparatively easier and quicker to arrange with immediate fund access.
● Interest charges are levied only on the balance that is overdrawn
● Relatively less paperwork. More suitable for online payments and repayments.
● Collateral not required.
● No extra charges for earlier repayments.
● Best for uncertain times when the exact amount required is unknown.
● Your credit scores remain good as cheques do not rebounce, making payments on time.
With these facilities, My Safe Loan additionally provides the best personal assistance in making your online Banking and Loan processes quicker and easier. Our employees take you through each process online to make it convenient. You also have several banking options to choose from.