HDFC Bank’s Overdraft Facility for MSMEs – 2023
HDFC recently introduced the ‘’Dukandar Overdraft Facility’’ for small businesses, shopkeepers, retailers, and Kirana stores to help them maintain good payment history along with managing debt or for debt consolidation purposes. Below stated are the key features of this facility:
- Interest Rate: Charged only on the utilized amount
- Loan Amount: From Rs. 50,000 – Rs. 10 lakh
- Collateral/Security: Not required
- Loan Amount Eligibility: Up to Rs. 7.5 lakh for MSMEs with minimum 6 years of business experience and Rs. 10 lakh for above 6 years
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Overdraft Facility against Salary
To make your process easy and provide you hassle-free service while processing an overdraft in HDFC bank, it offers you an online method to avail an overdraft for yourself, also known as Smartdraft – Overdraft Against Salary. You need not have to visit bank branches and go through the tedious process. Just go through the online portal of HDFC bank and from there you can fill out an easy form and get an overdraft under your name.
It is as simple as creating an online account. If you have a corporate salary HDFC bank account, then you can apply online for an OD. The online process is also very easy to understand.
Also Know: How does overdraft facility work?
Like every other financial process, an overdraft facility in HDFC bank also includes some eligibility which you need to stand upon to become eligible for filing an overdraft facility. These include-
- You must hold a Corporate Salary Account in HDFC bank to become eligible for OD
- Your account must have a regular income of salary
- The minimum salary needed to avail an OD in HDFC bank is Rs. 15,000 per month
- There is a list held by HDFC bank which mentions specific companies which they approve. If you’re not an HDFC bank user then your company must be on that list to become eligible to apply for an OD
- Some basic documents are needed to apply for the same. You will get to know about it prior to applying
So, these are some of the few requirements you must have in order to apply for an OD with HDFC bank.
Features along with Fees & Charges
- Minimum amount offered is Rs. 25,000 and maximum Rs. 1.25 lakh.
- Interest Rate: 15% – 18% p.a.
- Interest is charged only on the utilized amount from total sanctioned limit
- Processing Fees: Rs. 1500 + applicable taxes
- Annual renewal after 12 months
- Renewal charges Rs. 250 + applicable taxes
- Stamp Duty: As per State Law
- Penal Interest: 2% per month over and above the Interest payable
- Foreclosure Charges: Nil
- Money can be withdrawn from ATMs, online transfers, or cheques
So, these are a few points you must keep in mind before taking a step toward availing HDFC OD. The interest rate isn’t very high and the services offered are also good.
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There are some of the benefits of availing an OD in HDFC Bank. These are:
- You can get OD as high as 3 times against your salary. This helps you gain much in this facility
- The maximum loan amount of Rs. 1.25 lakh can be availed in form of Overdraft
- There are no pre-closure charges with minimum documentation
- The documents needed are not many in number and are easy to accumulate. So, you will not face any problem in this regard
- The renewable process of OD in HDFC Bank is very easy. You need not go for the hectic process. Just pay a small amount of Rs. 250 + applicable taxes and it will get renewed
- The interest rate charged on OD is charged only on the amount you actually use and not what you have availed in your account
- Using OD in HDFC Bank is also very easy and comfortable. Like your earned money, you can withdraw it via ATM, cheques, or online transfers
- You can calculate your OD interest by entering your limit and utilization values
An overdraft is a very convenient and safe way to handle any emergency expenses as and when they appear. HDFC Bank offers an easy and reliable way to apply for an overdraft, and very comparable terms to go with it. If you have a need for an overdraft facility, HDFC Bank is a smart choice for you, and you are sure to have a great experience.
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Process to avail Smartdraft – Overdraft Against Salary from HDFC Bank
There is a simple and hassle-free process for getting an OD service in HDFC Bank. The online process for availing one has been mentioned below:
- In case you don’t have one, create a corporate salary account in HDFC bank and then you will can proceed with the further processes
- In the next step, you need to log in with your account on the official website of HDFC bank.
- After logging in, search and click on the “Smartdraft” You will find it under the “personal loan” option.
- You will be redirected to a page containing an online form for Smartdraft. Just fill the required details. These will include basic details
- After correctly filling the form and double-checking all details, submit it
- After its successful submission, a representative from HDFC bank will get in touch with you for the purpose of verification
- After your application is verified and approved, you can now avail of the overdraft facility