A Personal Loan Overdraft facility essentially allows you to borrow over and above the funds that already exist in your bank account. An approved loan amount is agreed upon by you and the lending institution in question while you apply for an overdraft loan facility. The same can be repaid as per the convenience of the borrower. It is due to this reason that an Overdraft Loan facility is one of the most preferred credit options chosen by a borrower to meet varied personal funding requirements sans any credit restrictions. In order to avail the maximum benefits of an Overdraft Loan facility, you can choose the Personal Loan facility that is available on the Bajaj Markets portal.
Making use of the Overdraft Loan facility from Bajaj Markets comes with their own set of exciting benefits and features, which could ensure that your repayment experience is a smooth one. What you will find below are some of the benefits and features of an Overdraft Loan acquired through Bajaj Markets.
Interest-only EMI: A borrower has the option of only making the payments of the applicable interest amount, which would eventually prove to be instrumental in reducing the burden levied upon you due to making use of the Overdraft Loan.
Flexi-repayment tenure: After availing the Overdraft Facility, you can choose to pay your dues as and when it is convenient for you as long as you do so within the Overdraft Loan repayment tenure.
Withdraw as many times as you want: There are no restrictions when it comes to the number of times you can withdraw the requisite amount of funds for your needs as long as they fall within the confines of the approved limit granted to you through the Overdraft Facility.
Zero additional charges: The rate of interest calculated on the loan is only applicable on the amount withdrawn. If you, however, choose to make part-payments towards your principal amount, you incur zero hidden chances on ot.
Swift, online and paperless approval: The entirety of the Overdraft Loan application and approval process is carried out online, negating the need for tedious paperwork. All you will need is a set of basic documents pertaining to your identity.
When seeking immediate funding, it is important to learn the difference between an overdraft loan and a term loan. Let us understand these in detail.
An overdraft loan is a type of credit that is offered to individuals and organisations that hold a current account with the lender. The overdraft amount depends upon the account holder’s requirement but is given as per the norms set by the RBI. On the other hand, a term loan lets customers avail a fixed amount for a fixed repayment tenure. To get a term loan, you need not have a bank account with the lender.
There is a limit on the borrowed amount with the overdraft loan facility. With a term loan, you can access relatively higher funding.
With an overdraft loan, the rate of interest levied is charged based on the borrowed overdraft amount. The rate of interest levied on a term loan is standard, regardless of whether you use the whole amount or not.
An overdraft facility allows you to access funds for a shorter duration than term loans, typically between a few months to 2 years. The term loan tenure, on the other hand, can range for a longer period, i.e. from 1 year to 15 years.
The overdraft loan is perfect to cover daily expenses. Term loans, meanwhile, can be used for major capital investments like buying machinery, raw material, and more.
The overdraft loan can be paid off at any point after availing the funds. However, the EMI on a term loan has to be paid on schedule.
In order to to avail the benefits of the overdraft facility provided by banks and financial institutions alike, one will have to meet the following eligibility criteria:
Age criteria: The applicant must be 21 years of age at the very least.
Bank account requirements: The applicant should have an account with the bank in question.
Income criteria: Varies from lender to lender. However, one must note that a lender will prefer for the applicant to be an employee of a firm of repute.
Good CIBIL or credit score: Although a good CIBIL score is not that necessary for availing an overdraft facility, it is considered as an added advantage.
Business vintage: This, just like in the case of income criteria, will vary from bank to bank. However, banks will prefer a self-employed applicant who has a business that has been consistently generating profits for a good number of years.
Applying for an Overdraft facility through Bajaj Markets, as mentioned before, is a simple, easy and hassle-free process. If you have certain basic documents at your disposal, you can apply for those extra funds to fulfil your needs or desires right away. The only documents that are required of you are the likes of:
Personal loan documents that will be counted as proof of identity (Acceptable documents: Passport, PAN card, Aadhaar card, Voter ID card and Driving license)
A document that will count as your proof of residence (Acceptable documents: Electricity Bill, Gas Bill, Passport, or Leave and License Agreement.)
Bank account statement for the last 3 months.
Adherence to a few simple and basic steps can help you receive the funds that could potentially change the course of your life. What you will find below is a step-by step breakdown of applying for an Overdraft Facility through the Bajaj Markets portal. Read on to know more.
Step 1: Visit the website.
Step 2: You must start by filling in your personal, financial and employment details.
Step 3: Select the loan amount from the range approved for you and the loan tenure that you feel comfortable paying your dues in so that you can avail instant approval of the loan.
Step 4: After your Loan is approved and the terms specified by the official of one of the lending partners are agreed upon, you will then be credited with the money in your bank account within 24 hours of the same.
A personal loan overdraft facility can be defined as a credit feature provided by banks and other financial institutions that essentially permits the borrower to withdraw an amount from their bank account over and above what is already in their bank as per his/her requirements.
Some of the leading financial institutions that are offering overdraft facilities to their account holders are:
The types of personal loan overdraft facilities that an Indian bank account holder can avail are:
Overdraft against an individual’s salary
Overdraft against the applicant’s fixed deposit
Overdraft against any time deposits that are in the name of the applicant
In the case of an overdraft, one has to pay interest on the basis of the amount that they have actually availed as one. In the case of a loan, on the other hand, one has to pay the interest amount on the basis of the total approved loan amount.