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Get OverDraft Loan up to ₹50 lakhs

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Product Detail

  • No money in your bank account?
  • However, do you want to pay staff wages?
  • Are you concerned about your business’s day-to-day expenses?

 

You can apply for a business loan overdraft for urgent business payments and get the money within 24 hours.

 

Do you need to pay off any unforeseen expenses in your business, like an emergency equipment repair bill or labour hiring cost, and have 0 balance in your bank account?


Then, you need an overdraft loan. Your bank can offer you this loan based on some parameters. In these loans, you have the flexibility to pay interest only on the amount that you use. However, you have to pay 0 EMI on the unused amount.

 

Business Loan Overdraft Benefits

 

1. Apply for loans up to ₹50 lacs.

2. Zero EMI Loan

3. Pay interest on utilized amount only.

4. Repay the loan in 84 months.

5. Withdraw and deposit money anytime.

6. Loan approval within 24 hours

7. No guarantor required

8. 100% Online Process

 

Eligibility

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Who can apply:

·       🏢 Minimum 2 years business existence

·       📈 Credit score - 700 or above

·       🧾 One ownership is mandatory
(residence or office)

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Age:

  • Above 23 years and below 58 years

Required Documents

Identity Proof

    Any of the following

    ·       Passport

    ·       Voter ID

    ·       Driving License

    ·       Pan card (Mandatory)

    ·       Aadhar Card (Mandatory)

Address Proof

    Any of the following

    • Piped Gas Bill
    • Electricity Bill
    • Domicile Certificate

Other Docs

  1. Current A/C Bank Statement (Last 1 Year)
  2. Income Tax Returns (Last 2 Years)
  3. Proof of Office Address
  4. Proof of Business Existence
  5. GST Registration Certificate
  6. Proof of Residence or Office Ownership

Example

For instance, Megha, owner of a Surat-based clothing brand, has taken a business loan overdraft of ₹40,00,000. She took this loan at an 15.99% interest rate and has to repay the loan within 5 years. This means she can borrow up to that amount whenever she needs it.


One month, she needed ₹10,00,000 to pay for some business expenses. Instead of borrowing the full ₹40,00,000, she withdraw only ₹10,00,000 from her Overdraft account. Megha only had to pay interest on the ₹10,00,000 she used, not on the whole ₹40,00,000 which is approx Rs 438/day. Later, when she got paid by her clients, and she repaid the ₹10,00,000, and her full ₹40,00,000 overdraft limit was available again and her interest from that day went to zero again and she don't have to pay any Interest or EMI now. This helped Megha manage her money better and avoid extra interest charges. She only pays interest amount for the limited period of the funds utilisation, otherwise its zero repayements.


As a result, Megha paid an interest of ₹1,59,990 along with the principal amount of ₹10,00,000 for the funds utilised for whole year. According to this, she will need to pay just ₹13,325/month for 60 months if funds are kept utilised for 5 years. Megha will also have to pay ₹80,000 as a one-time processing fee (charged at 2%). Secondly, she will also pay ₹500 as stamp duty charges. T&C applied.


The repayment period for business overdraft loans ranges between 1 and 7 years. Depending on the applicant’s financial records and credit score, a business overdraft loan’s annual percentage rate (APR) can vary from 15.99% to 19%.

 

Repayment Period

Minimum 1 year to Maximum 7 years

Annual Percentage Rate (APR)

Minimum 15.99% to Maximum 19%

Processing Fees

1% to 2%

Stamp Duty Charges

Rs. 500

 

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