How does HDFC Overdraft Facility For Current Account work?

HDFC is one of the oldest and biggest private sector banks operating in India. It’s range of amazing products has helped people achieve their dream and is still continuing to do the same. Whether it is a home loan for buying their dream house or a personal loan to finance their kid’s education or credit facility to help small businesses flourish, HDFC has always offered support at affordable interest rates.

To get a business from point A to point B, the requirement of finance required is immense. Who else will know better than you? Since HDFC is also a business entity, it knows the role of finance in accentuating the growth of business. In order to help you reach your desired growth for your business, HDFC provides overdraft facility on your current account. For the ease of the business owners, the overdraft facility is offered without any security. Let’s get to know what the HDFC Overdraft Facility is all about and what benefits it can bring to business owners, also, what is the eligibility criteria to avail one.

What are the features of the HDFC Overdraft Facility For Current Account?

The Overdraft Facility provided by HDFC on current account is called Dropline Overdraft Facility. Some of the exciting benefits provided by this facility are as follows:

No Security: Where other banks and NBFCs are providing overdraft facilities by asking the customer to pledge securities to avail it, HDFC has taken a different approach; it does not ask the customer to submit any collateral to make use of the overdraft benefit. Thus, no guarantor or security is required to get this business loan.

Overdraft Amount: The overdraft amount that you can take against your HDFC current account ranges from INR 5 lakh to INR 15 lakh. This amount you can utilize to grow your business at a time when you’re out of funds and see no silver lining. The facility can be much help to small business owners who need working capital their disposal from time to time.

Tenure: This facility can be availed ranging from 12-48 months. You can payback the amount taken under this facility at your own pace within the specified period.

Rate of Interest: HDFC Overdraft facility for current account offers really attractive interest rate options. Under this scheme, you just have to pay interest only on the amount utilized and not on the whole amount. Isn’t that sigh worthy?

What is the Eligibility Criteria to avail HDFC Overdraft Facility For Current Account?

• Should be a Business Owner, Self-employed, Proprietors, Partnership Firms or Private Ltd. Co. who are involved Trade, Services and Manufacturing business.
• Minimum vintage of business should be 3 years, with a total of 5 years of business experience.
• The minimum business turnover required is INR 40 lakhs.
• There’s a mandatory condition that says the business should have made profit in the last two years.
• Also, the business should have filed a minimum ITR (Income Tax Return) of INR 1.5 lakh per annum.
• The minimum age that HDFC requires the business owner to grant the overdraft facility is 21 years at the time of application. And, a maximum age of 65 years at the time of loan maturity is required to avail the facility.