Personal Loan Overdraft Facility

Personal loan overdraft is a credit facility offered by banks and financial institutions that permits you to withdraw funds up to a pre-approved limit. You pay interest only on the utilized loan amount from the assigned limit and can be withdrawn multiple times.

Both of the credit products provide you access to avail funds at times of need. It all depends on your financial requirements and repayment ability to use and repay the funds. A personal loan is disbursed in the form of a lump sum amount and is sanctioned based on your income, credit profile, employment stability. Overdraft facility is sanctioned based on your account balance and relationship with the lender.

The eligibility criteria of a personal overdraft is quite similar to regular personal loan, wherein the age of the applicant is usually 21 to 65 years. The salaried and self-employed individuals are eligible to apply for a personal loan overdraft with regular income and with stable job or business. Ideally, your CIBIL score should be 750 or above with a stable and continuous source of income to be eligible for a personal loan overdraft.

The primary purpose of personal loan overdraft is to meet urgent or unforeseen financial requirements. Personal loan overdraft is mainly used to have access to short-term funds to meet immediate expenses.

Overdraft for salaried is a credit facility offered by banks and financial institutions that allows salaried individuals to withdraw funds beyond their bank account balance up to an assigned credit limit.