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Compare & Apply for Overdraft and Pay 0 EMI*
An Overdraft facility is a credit facility that allows to have surplus money reserved in bank account for any present and future uses without any burden of paying EMI on the same. One can withdraw money anytime they want and repay the withdrawn amount at their convenience. Hence, it is one of the most preferred credit options available to meet varied personal funding requirements without limit with immediate access to funds. The lenders charge a fixed rate of interest over the borrowed amount which is calculated only for the duration of money borrowed and not on the complete tenure of the loan.
APPLYING FOR AN OVERDRAFT FACILITY
An overdraft facility is like a loan which the borrower takes from the bank. Banks pre-entitle some customers for availing this facility whereas some customers have to get approval from the bank for availing this facility.
The overdraft facility is activated and the outstanding goes positive as soon as the customers who are pre-entitled withdraw the extra money from their account.
ADVANTAGES OF OVERDRAFT FACILITY
No prepayment charges: Overdraft is a great way to deal with financial emergencies. Banks moreover don’t charge any prepayment charges on overdraft.
0 EMI: The borrower doesn’t always have to repay the overdraft amount in EMIs, instead they can opt to repay the amount used anytime during the duration of the overdraft loan. The only monthly payments will be the interest payments for the amount utilized. With no amount utilized, EMI will be always 0 with no burden of repayment.
Easy Accessibility: Individuals can use overdraft facilities to meet their short term financial needs. The overdraft facility is easily accessible and comparatively cheaper than other loan products.
COMPARISON OF PERSONAL vs OVERDRAFT LOAN
A personal loan bears EMI payments for the full tenure of loan duration whereas an Overdraft loan bears only interest payment on the amount withdrawn from the account.
Example 1:- Let's suppose Rohan got approved for 1 lakh overdraft limit and 1 lakh personal loan amount each. And he used all 1 lakh loan amount in the next 1 month for both cases. Let us see the difference in the outflows.
Comparison Table 1 | ||
|---|---|---|
Particulars | Personal Loan | Overdraft Loan |
Approved Loan Amt | 1 Lakh | 1 Lakh |
Used Amt( in 1st month) | 1 Lakh | 1 Lakh |
Tenure of loan | 5 Yrs | 5 Yrs |
Monthly EMI | Rs 2352 | Rs 1208( only Interest) |
Conclusion 1:- Overdraft Loan reduces the monthly EMI obligation by almost 50% !!
Example 2:- Let's suppose Simran got approved for 5 lakhs overdraft limit and 5 lakhs personal loan amount each. And she used 1 lakh loan amount in the next 1 month for both cases. Let us now see the difference in the outflows.
Comparison Table 2 | ||
|---|---|---|
Particulars | Personal Loan | Overdraft Loan |
Approved Loan Amt | 5 Lakhs | 5 Lakhs |
Used Amt( in 1st month) | 1 Lakh | 1 Lakh |
Tenure of loan | 5 Yrs | 5 Yrs |
Monthly EMI | Rs 11,764 | Rs 1208 (Only Interest) |
Conclusion 2:- Irrespective of the loan amount approved, Simran will only be charged for the withdrawn( used) amount in an Overdraft Loan as compared to higher EMI payments on the whole approved amount in a personal loan.
Features & Benefits
Eligibility
Who can apply:
- Minimum ₹ 40000 income in metro cities and ₹ 28,000 in other cities
- Salaried individual
- A credit score above 700
- Total work experience of atleast 1 year
Age:
- Above 23 years and below 58 years
Required Documents
Identity Proof
- Passport
- Voter ID
- Driving License
- Aadhar Card (Mandatory)
- Pan card (Mandatory)
Any of the following
Address Proof
- Passport
- Utility Bill
- Aadhar Card
- Driving License
Any of the following
Other Docs
Mandatory
- Salary Slips ( Last 3 months)
- Salary A/c Bank statement ( Last 3 months)
Calculator
Calculate your Loan EMI in 3 easy steps. Use the slider to set your loan amount, interest rate and tenure to understand your loan summary
Loan Summary
Loan Amount
₹ 100,000
Interest Payable
₹ 17,397
Monthly EMI
₹ 1,957
How to Apply
LoansJagat is a platform to offer overdraft facility quickly and efficiently without having a difficult application process. Our aim is to offer a hassle-free process so that no one has to wait for their dream to become a possibility. Apply for a loan right away!
- Visit the LoansJagat.com
- Click on apply button
- Select the loan category
- Enter city name
- Fill in the total loan amount
- Mention the Net Monthly Salary
- Enter your mobile number
- Click on the next button
- Fill in your personal and financial details
- Finally, based on the following information, you will get bank options available.
Tips to Avoid Loan Rejection
The following guidelines assist in improving the chances of loan approval to avoid the possibility of rejection of overdraft facility.
- Eligibility Criteria: It must be adhered to reduce the chances of loan rejection.
- Regular Paid Installments: Monthly payments must be ensured on time.
- Credit Utilization: It must be a ratio of 30% or less.
- Credit Scores: They are often the key factor on which lenders rely on to assess the risk associated with an individual. A score of 750 and above is considered credit-worthy to increase the chances of loan approval.
- Avoid Multiple Loans: Taking several loans and credit cards without closing pre-existing applications will also portray you as credit-hungry and unreliable as a borrower.
- Inquiries And Applications: As an increased number of lenders approach, a person's credit score gets lower, often showing that they are credit-hungry and in dire need of funds from lenders and banks, jeopardizing their financial credibility.
- Debt-to-Income Ratio: Keep your debt-to-income ratio low. This ratio compares your monthly debt payments to your monthly gross income. Lenders typically prefer a ratio of 36% or lower.
- Consider a Co-Signer: If your credit score or income is insufficient, a co-signer with a solid financial profile can improve your chances of approval of a personal in kolkata..
- Be Honest: Provide accurate and truthful information on your application. Misrepresentation can lead to automatic rejection and damage your credibility.
- Consult a Financial Advisor: If you’re unsure about your financial standing or need advice on improving your chances, consult a financial advisor.