What is The OD Interest Rate in SBI Bank?

State Bank Of India is one of the largest public sector banks and known for its wide range of banking products. It offers an overdraft facility to the customer so that they can easily resolve their financial problems. The overdraft or od works similar to a personal loan the difference is just that you can withdraw money from your account whenever you need money. To know od interest rate in SBI read the given article.

How SBI overdraft facility works?

The overdraft provides you the desired amount on a specific rate of interest it works like a preapproved loan. You can apply for an SBI overdraft account against fixed deposit, insurance policy, property or salary. OD interest rate in SBI depends on the applicant’s job stability, flow of income or asset value. You can borrow an amount from your SBI overdraft account whenever you require funds and pay for it through auto debit option. Because the interest rate changes daily and the borrowed amount is paid from your savings or salary outstanding amount. Also, you can borrow the amount from your SBI OD account anytime up to the given limit. You can pay for the borrowed amount in 6 months EMIs with the applicable interest rate.

OD interest rate in SBI depends on the Bank MCLR

SBI OD interest rate is based on the marginal cost of fund-based lending rate (MCLR). The current MCLR of SBI bank ranges from 7.70% to 8.25%. Applicants who are working in defense, paramilitary and Indian coast can get a lower OD interest rate in SBI, which is 12.55% to 13.05% on a 2-year MCLR spread. On the other hand, the salaried applicants get an interest rate of 12.55% to 15.55%. If you want to take a term loan from your overdraft account then the interest rate on the borrowed amount would range from 12.65% to 14.30%.

How to get a suitable OD interest rate in SBI?

To get a lower interest rate on your overdraft account in SBI you have to make sure that your credit report is errorless. And, also must provide a strong asset or fixed deposit against which you can take the overdraft facility. You can get a lower OD interest rate in SBI if your credit report is good with zero dues and none EMI default otherwise, you will get a higher rate of interest. So, try to improve your credit score before applying for the sBI overdraft facility.

Apply for the SBI Overdraft account and get the desired loan amount

You can apply for an overdraft facility by going to the nearest SBI bank branch or through online banking services. SBI provides you an Overdraft facility on your salary and fixed deposit, if you apply for an overdraft account against the salary then it is considered as unsecured. Whereas if you take the overdraft facility against your home, asset, fixed deposit or insurance then it is secured and you may get a lower OD interest rate in SBI. Now, fulfill your urgent requirement of funds with SBI overdraft facility and borrow amount at affordable interest rates with easy access repayment.