Know Here the Overdraft Interest Rate of Different Banks

Availing an overdraft facility is increasingly getting common among people. A lot of applications go for overdraft as the increasing inflation often makes the savings account balance insufficient to carry out a normal routine. Yes, an overdraft is nothing but a credit offered to individuals allowing them to withdraw money beyond the savings account balance. And so, its importance can’t be undermined by any stretch of the imagination. However, one must compare the overdraft interest rate of different banks before choosing one out of them. The interest rate of several banks is pointed out in the article to help you compare and choose the best.

SBI Overdraft Interest Rate

SBI offers overdraft facility to a variety of customers including defence personnel, power sector employees, etc. Defence personnel gets to pay the overdraft at 12.05%-12.55% per annum. Employees working in companies involved in businesses related to power generation and distribution would be offered overdraft at an interest rate ranging from 12.65%-14.30% p.a. For others, the interest rate would be 12.55%-15.55% per annum.

InstaOD ICICI Bank Interest Rate

ICICI Bank offers the overdraft facility under the brand name of InstaOD, specifically designed to meet the working capital requirements. The bank can provide up to ₹15 lakhs of overdraft without any collateral. ICICI levies interest rate on the overdraft at its 6-month MCLR plus 7.5% spread. The 6-month MCLR of the bank stands at 8.75%, which combines with 7.50% spread, to arrive at the lending rate of 16.25%.

HDFC SmartDraft Interest Rate

The private lending leader HDFC Bank offers overdraft to its corporate salary account holders. It’s being offered via SmartDraft, offering the loan up to 3 times the salary of an individual. Plus, there are no pre-closure charges. The rate of interest is, however, not disclosed by the bank. You need to contact the bank officials to know the interest rate.

Axis Bank Overdraft Facility Against Property

Axis Bank offers overdraft facility against the residential or commercial property. The minimum and maximum loan amount to 5 lakhs and 5 crores as per the bank policy. Coming the point of interest rate and the bank does not disappoint at all. The Interest rate ranges from 12.35%-12.45% per annum. The rates are charged on the bank’s 6-month MCLR of 8.75% plus a spread component of 3.60%-3.70%. What’s worthwhile is that the rates are charged on the utilized portion.

Bank of Baroda Overdraft Interest Rate

Bank of Baroda (BoB) provides overdraft facility against National Savings Certificate (NSC)/Kisan Vikas Patra (KVP) and life insurance policy/relief bonds at varied interest rates. The rate of interest on overdraft could be higher of 12.45% or 0.75% over NSC/KVP. On the other hand, overdraft against life insurance or relief bonds is provided at 12.45%.

So, you get to see the overdraft interest rate of different banks to decide which is the best in your case. If you seek an opinion from our side, it can be said that the bank charging interest only on the utilized portion of the overdraft limit should be considered. At the same time, the interest rate needs to be on the lower side.