Compare & Apply for Self Employed Dropline Overdraft

Dropline overdraft loans are secured loans where the borrowers pledge their property as a security. Sum of the amount lent is 50%-80% of the property's market value. The loan amount is reduced at various intervals like monthly, quarterly, semi-annually OR annually from the principal depending upon the lending bank’s policy. Ownership of the property pledged remains with the borrower only.
 

Why should I take dropline overdraft? How will it help me?
 

Every businessman wants to avoid a liquidity crunch especially during a peak season or when they have an expansion plan. While the market offers business loans, the Dropline Overdraft Loans facility is an extension to the same which can easily be used whenever required.

It's easy on the pocket considering the interest is charged only on the amount utilized! Other benefits are as follows:
 

1) Higher Loan Amount - The Overdraft loan can be availed from Rs.20 lacs to Rs.100 crores depending upon the value of the property being pledged and the income.
 

2) Ease of Paying Back - Longer tenures help the borrower to plan the repayment with ease. An average tenure for Dropline Overdraft Loans is 10 years, which gives flexibility to the borrower for repaying EMI's from the income earned.
 

3) Quick Processing - LoansJagat helps businesses to get access to overdraft loans within 6-7 days of processing which helps one to get funds immediately.
 

What are the documents required for taking Dropline Overdraft Loans?
 

• Personal Documents
   

1. Application form with Passport Size Photographs of all applicants and co-applicants.
2. PAN Card of applicant and co-applicant.
3. Identity Proof – Voter ID/ Driving License/ Passport/ Aadhar Card.
4. Address Proof – Voter ID/ Driving License/ Passport/ Telephone Bill/ Electricity Bill .

• Ownership proof of residence and office either in the name of the applicant or jointly with family members.
   
• Financial Documents
  
  Self-Employed Individuals / Sole Proprietorships

1. Latest audited ITR and financials for the last 3 years -Balance Sheet, Profit & Loss A/c., Computation of 

   Income along with all schedules and audit report.

2. Past 12 months Bank statements from the borrower's main account/s as mentioned in the Balance 

   Sheet for the latest year.

3. GST returns of the last 12 months.
4. Sanction letter and repayment Track of any running loan.
   
   Partnership Firms / Private Limited Companies
5. Latest audited ITR and financials for the last 2 years -Balance Sheet, Profit & Loss A/c., Computation of Income along with all schedules.
6. Past 12 months Bank statements from the borrower's main account/s as mentioned in the Balance Sheet for the latest year.
7. Partnership Deed for partnership firms.
8. Memorandum and Articles of Association and Board Resolution from the company.
9. Certificate of Incorporation  for private limited companies.
10. Latest shareholding patterns for Private Ltd. /public Ltd. Companies.
11. GST returns of the last 12 months.
12. Sanction letter and repayment Track of any running loan.
    
    Property Papers
     
13. Photocopies of Latest sale deed/ registry in the name of the borrower or their family.
14. Photocopies of Conveyance Deed, if available.
15. Photocopies of Property Map, if available.
16. Photocopies of all other old relevant property papers chain associated with property.
    
    How do I apply for Dropline Overdraft Loans?

LoansJagat offers a unique platform with access to multiple Banks and NBFCs offering overdraft loan options depending upon your requirement. An applicant has to answer 2 basic personal and financial questions.  Post their reply, LoansJagat automatically shows various options available to the borrower from different banks to choose from and decide.

Once decided, LoansJagat gives the option to proceed further either online or offline for the documentation. During this journey, a loan expert from the company helps you out to expedite the process. The borrower has complete access to track the loan application.
 

Why should I go with LOANSJAGAT?

We have a team of dedicated experts from financial domain who keep the interests of customers as their top priority. LOANSJAGAT has been delivering to the demands of the customers since its inception in 2002 and has established a partnership with 40 banks and NBFCs which helps us to serve our customers as per their requirement. We are a process-oriented company, always seeking to give best while safeguarding the interests and data of our customers.
 

Ready to take Dropline overdraft loan. Here are the top Mistakes to Avoid!

Dropline Overdraft loans are an efficient way of managing business funds as you pay interest only for the amount used.

Let us consider example of Tarun who runs a Travel business and needs funds during the peak season to book holidays for his clients. He needs additional funds to quickly book the travel for his customers. The Overdraft loan adds as an added source which he can use in case he falls short of funds. However, to utilise this facility without any hassle, he needs to avoid the following mistakes:
 

1. Paperwork - Clarity should be given to the banks about the objective as the first step. Financial institutes are within their rights to know how and where funds will be used. Also, keep all the required documents pertaining to income and property ready which forms the basis for approval.
    
2. Financial Position - Borrower should have a calculation of their assets and liabilities. This will help them in having the visibility on how many loans they can afford and how much EMI they can pay against the loans that shall not eat away all their income.
    
3. Credit Rating - Borrowers should be aware of their creditworthiness. All banks check customer’s past loan history and repayment trends to arrive at the final conclusion on principal and interest.
    
4. Agreement Terms - It’s the responsibility of the borrower to read the terms of the agreement clearly before signing. One should be clear about the charges that come with the loan in case of a pre-closure or late payment of EMI's.