Everything About Overdraft Facility India Detailed Here

The overdraft facility is increasingly offered to help people deal with any unforeseen circumstances that can strike them anytime. Over the years, businessmen used to avail this facility the most to meet the business exigencies. Call it the need of the customers or the desire of banks to bring more people under the beneficiary list of this service, the overdraft facility is now available to even the salaried class who has had to go through several ups and downs these days. And, if you are unaware of Overdraft Facility India, you can know the same in this article.

Banks That Offer Best Overdraft Facility in India

All the major banks such as the State Bank of India (SBI), HDFC Bank, ICICI Bank offer overdraft facility to eligible individuals. Let’s check out the overdraft offers of these banks one after another.

SBI Overdraft Facility

The country’s largest lender State Bank of India is quite elaborate in terms of overdraft offers. SBI overdraft facility is available to varied sections, such as the armed forces, IT employees, etc. The interest rate charged to overdraft accounts is benchmarked to 2-year MCLR, which stands for Marginal Cost of Lending Rate. The MCLR, which would most likely vary with time, currently stands at 8.60%. The spread is further added over the MCLR to arrive at the actual lending rates. The spread would differ according to the customer profiles and so are the lending rates.

Defence, paramilitary or Indian coast guard personnel can get the overdraft at 12.50%-13.00% per annum, lower compared to other applicants who are servicing the same at 12.50%-15.50% p.a. Overdraft facility provided via Xpress Power Scheme comes at 12.60%-14.25%. IT employees get the overdraft at 13.40%-15.40%.

HDFC Overdraft Facility

HDFC Bank is another lender giving SBI a good competition by virtue of attractive overdraft offers. HDFC corporate salary account holders can get overdraft equating to up to 3 times their remuneration. The interest won’t get charged on the overall disbursal amount but on the utilized portion at attractive rates. Your HDFC account must show regular salary credits. On the other hand, you must also have a minimum net monthly salary of ₹15,000. It is also required that you work in a company that figures under the approved list. There are no pre-closure charges. The overdraft limit would be renewed after 12 months on the basis of salary credits and the overall account performance.

ICICI Overdraft Facility

ICICI Bank is also a leading provider of overdraft to sole proprietorship concern, private and public limited company, limited liability company, etc. The bank can sanction as much as ₹15 lakhs of overdraft. You can log in to corporate internet banking, i-biz app or even the official website of ICICI Bank to avail this facility. You need to submit the pre-filled application form, verify the overdraft limit, rate of interest, processing fee and accept to get the amount disbursed to the account. If you don’t find it comfortable doing online, you can avail unsecured current account overdraft by submitting the KYC documents, bank statement for the last 12 months, etc.