All you need to know about overdraft against salary

 One of the most preferred loan is overdraft against salary offered to salary account holders by various banks & NBFC's at competitive rates. If you are planning to avail this credit facility, make sure you know about it well.

 

Features & benefits of overdraft against salary

Get loan at attractive interest rates

Quick processing

Interest payable for withdrawn amount only

Digital processing available

One time processing fee

 

Eligibility criteria of overdraft against salary

Age: - Applicant age should be above 21 & below 60

Work Experience: - You must have 3+ years of experience & latest 1 year should be with same organization.

Income: - Your minimal income per month must be above Rs. 30,000.

 

Documents required for overdraft against salary

1. Identity proof (any one of the following) -

Aadhar Card

Pan Card

Voter ID

2.Residential proof (any one of the following) -

Rent Agreement or Lease Agreement

Ration Card

Passport

Electricity Bill

Water Bill

3.Income Proof

4.Bank statement

 

How overdraft against salary works?

Mostly, bank itself select applicant based on credit profile & repayment history of existing loan. If your credit history seems clear with no default, then you can also take an initiate to get this type of credit facility for emergency purposes of financial requirements, it works like a credit card bank will set a limit up to which you can withdraw & pay interest. Contact your nearest bank branch for further information.

 

Pros & Cons of overdraft against salary
 

Pros -

Minimal Documentation: - It gives you the comfort of less documentation to provide & lessen you time constraints.

Fast Processing: - As compared to other loan it takes longer time period to get sanction & disbursement wherein in overdraft facility is fast processing.

Low interest rates: - The best of this facility is interest are calculated for utilized amount only.
 

Cons -

Interest rates strategy: - Might be interest calculated for utilized amount, but interest rates are higher compared to other loans.

Unpredictable repayment: - Maximum tenure is up to a year but bank can ask for repayment any time depending on usage of limit & repayments.
 

Overall, this credit facility is best for emergency purposes. Get compared from different banks,Financeseva helps you to get the best deal according to your specific requirements.

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