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Overdraft Facility for Business
Run your business smoothly with working capital loans
High Overdraft Limit
Low Interest Rate
Quick Approval
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What is Overdraft Facility?
An overdraft facility is an option provided to you by your lender, which allows you to withdraw more money than the available balance in your current account. However, there is a limit on how much you can withdraw. Also, you will be charged interest on the withdrawn amount.
Overdraft Facility EMI Calculator
For short-term cash flow, you can take our OD facility and use our overdraft facility EMI calculator to calculate your EMI amount:
Features and Advantages of Overdraft Facility with InvestKraft
Let us see some of the features and advantages of the overdraft facility that set us apart from others:
Covers Short-Term Expenses
For unexpected short-term expenses like urgent bills, raw material purchase or gaps between receivables and payables, an overdraft facility can help you solve your business-related financial issues.
Improves Working Capital Management
With the timely availability of funds with an overdraft facility, your working capital gets improved, thus helping you grab any immediate opportunities or get over the seasonal cash crunches.
Boosts Financial Flexibility
An overdraft facility is like an emergency fund. You can withdraw anytime you need. This greatly improves your financial flexibility in case there is a sudden requirement of cash.
Key Features of Overdraft Facility:
The bank sets a limit based on the applicant's creditworthiness and financial profile.
Interest is charged only on the amount utilized, not on the entire approved limit.
Borrowers can repay the overdraft amount anytime within the tenure.
The overdraft limit can be renewed periodically based on usage and repayment history.
Eligibility Criteria for Overdraft Facility
Let us see the eligibility criteria for overdraft facility from the following table:
| Criteria | Details |
|---|---|
| Business Stability | Your business must be operational for at least 1 year with a consistent track record |
| Financial Strength | Must show regular profits and well-maintained financial records |
| Credit History | A strong credit score and repayment history are essential |
| Business Plan | A clear, growth-oriented business plan is required |
| Collateral (if required) | Some banks may ask for security like property, machinery, or other assets |
| Banking Relationship | Having an active and positive relationship with your bank boosts approval chances |
Please note that these are the basic eligibility criteria. There can be some variations depending on your financial relationship with your lender and other criteria.
Documents Required for Overdraft Facility
The following are the documents required for the overdraft facility, as mentioned in the table below:
| Document Type | Details |
|---|---|
| Business Registration |
|
| Financial Statements |
|
| Personal KYC Documents |
|
| Bank Statements | Business account bank statements for the past 6–12 months |
| Address Proof | Proof of business and residential address (utility bills, rent agreement, etc.) |
| Collateral Documents | Property papers, vehicle registration, or any asset-related documents (if collateral is required) |
Please note that these are the basic documents required. However, depending on your lender and your financial situation, there may be a requirement for more documents.
Who Can Apply for Overdraft Facility?
The following can apply for an overdraft facility from InvestKraft
| Applicant Type | Eligibility Criteria |
|---|---|
| Salaried Employees | Individuals with a regular income can avail an overdraft against their salary account. |
| Self-Employed Professionals | Doctors, lawyers, chartered accountants, and similar professionals with stable income and credit history. |
| High-Net-Worth Individuals | Eligible based on fixed deposits, investment portfolios, or overall asset strength. |
| SMEs (Small and Medium Enterprises) | Can apply for working capital needs like inventory purchase, supplier payments, or managing cash flow. |
| Large Corporates | Suitable for managing short-term liquidity or covering urgent operational expenses. |
| Startups | Eligible based on financial health, stability, and creditworthiness. |
Please note that if your application does not belong to any of the above applicant types, then please contact us, and we will help you get the best business loan based on your profile.
How to Apply for Overdraft Facility Online?
In just 4 easy and simple steps, you can get an overdraft facility online:
01
Visit InvestKraft and check the eligibility
02
Apply online for the OD.
03
Upload necessary documents and wait for the approval
04
Sign the necessary documents and get going
Types of Business Loans
The following are some of the most required business loans. You can apply as per your requirement:
Rate of Interest and Other Charges on Overdraft Facility
The amount you withdraw through the overdraft facility has interest rates and other charges. The following table shows the interest rate and other charges associated with overdraft facility:
| Particulars | Details |
|---|---|
| Interest Rate |
|
| Processing Charges | Usually, 2% of the sanctioned overdraft amount + applicable taxes |
| Pre-closure Charges | Typically 2% + GST, may vary depending on lender and type of overdraft |
| Bounce Charges | Fixed by most banks/NBFCs at INR 500 + taxes for each bounced repayment |
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