Know How To Avail Overdraft Loans And Its Benefits

Have you ever heard about the personal overdraft loan? What is overdraft loan, and what are its benefits?

If you are unaware of the basics of the personal overdraft loan, then this post will help you explore the basics!

What is an overdraft loan?

The personal overdraft loan is a credit facility that permits you to withdraw an amount as per your needs.

It is also possible to repay the amount that you have withdrawn as per your convenience.

Thus, it is one of the best credit alternatives available to help you meet diverse monetary needs without limit.

What are the eligibility criteria of the personal overdraft loan?

  • You need to be a resident citizen of India.
  • You have to be a Salaried applicant.
  • Your age should be between 23-55 years.

What documents do you need to furnish for the personal overdraft loan?

  • KYC Documents (proof of identity) like the Passport, PAN Card, Voter ID Card, Aadhar Card and Driving License.
  • KYC Documents (proof of address) such as the Gas bill, Leave and License Agreement, Passport and the Electricity bill.
  • Last 2 months’ Salary slips and previous 3 months’ Salaried bank account statements. These documents are needed by lenders to ascertain your creditworthiness. Your cibil score and credit history will also be analyzed as part of your creditworthiness.

What are the features and benefits of the personal overdraft loan?

  • Interest only EMIs – When you borrow an amount out of the personal overdraft loan, then you are allowed to make interest only EMI payment. And that makes your repayment convenient and less straining on your outlays.
  • Flexi repayment tenure – It is up to you to make the prepayments as per your needs anytime during the loan tenure.
  • Unlimited withdrawals – Most of the known lenders in India let you withdraw as many times as per your wish from a pre-approved loan figure.
  • No extra charges – The personal loan interest rate on the overdraft facility is applicable only on the amount withdrawn. Making prepayments for the principal amount will not lead to the payment of any extra charges.
  • No tiresome application process – Applying for the personal overdraft loan does not mean wasting your time and money. You are supposed to submit only a few basic documents and the application procedure is paperless.

What is the process to apply for the personal overdraft loan?

The application of the personal overdraft loan is easy if you can follow the below steps. Let’s take a look:

  • Visit the website of one of the online loan financers to check and compare loan offers in the marketplace.
  • You will need to start by filling the online application form with your personal, employment and financial details.
  • You should then choose the loan amount and the tenure you want to repay it within. It will help you go one-step closer to the instant approval of the loan.
  • Now, the representative of the lender will get in touch with you to collect the loan documents.
  • If everything is good to go, then your approved loan money will be credited into your bank account within 24 hours.

Are you looking to apply for the personal overdraft loan with one of the leading lenders in the city? If yes, then you need to compare all offers online and pick only the best.