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Why Take OD Limit From Us?

  • 20 years of experience in Overdraft Limit (OD Limit).
  • Overdraft Limit (OD Limit) up to Rs. 100 crore.
  • Lowest ROI & processing fees.
  • Loan up to 75% of property value.
  • 20% higher loan amount than other service provider.
  • Overdraft Limit to “LOW CIBIL SCORE” or “NO CIBIL SCORE”.
  • Overdraft Limit without stock & debtors statement.
  • Loan to all kinds of profile. There is “NO NEGATIVE PROFILE”.
  • Overdraft Limit on almost all types of property .
  • Minimum Documentations.
  • Fastest loan approval guaranteed
  • No Hidden Charges.
  • Amicable after sales service.

Overdraft (OD) Limit

When a businessman requires fund for his business, he has two options either to opt for long term funding from bank or NBFC by taking loan against property or term loan against property or to opt for short term funding usually for one year by taking overdraft limit (OD Limit) or cash credit limit (CC Limit). Long term funding like loan against property carries lower rate of interest in comparison to short term funding like OD Limit or overdraft limit. However borrower can save interest on OD limit by depositing extra money in the overdraft account and thus paying interest only for amount utilized.

An overdraft limit is a loan amount sanctioned by the bank or NBFC to the borrower to meet his business requirements. OD limit is like a current account. An OD facility allows you to withdraw money or issue cheque up to the approved OD limit, even if there is no balance in the account. It is a short term credit facility generally for 12 month, which is renewable after every 12 months.

The overdraft limit or OD limit is the maximum amount that you can overdraw from bank or NBFC. Borrower has to pay interest on utilized amount only. Interest is calculated on daily overdrawn balance and debited to the OD account monthly.

Whatever amount you repay into the overdraft account, you can withdraw it again as long as the limit is not over utilized. That’s why OD limit or overdraft facility is also called revolving credit facility.

OD Limit Used For Uninterrupted Business Activity And Expansion Of Business: As a businessman you may have to sale your goods and services on credit to your buyer and expecting timely payment from your debtors. But due to various reason and circumstances you may or might be not getting payment on time, due to this you may face liquidity problem. Due to liquidity problem, you may be not able to make payment of regular and fixed, business expenses on time like employee salary, commission, payment to your creditors etc. Supplier may stop supplying goods and worker may go on strike. This will not only affect your business but also cause a great loss to the company. This will also affect goodwill and reputation of the company.

To come out of this situation you can avail overdraft facility or OD limit from bank, so that you may not face liquidity problem. Timely payment of your business expenses gives you great mental satisfaction and helps you to run your business smoothly. This will also increase goodwill and reputation of the company.

OD Limit Used To Meet Unexpected Business Expenses: Life is full of uncertainty. As a businessman you have to make certain expenses for which you have not made any provisions. Expenses such as road accident, death of an employee, government rules, hike in rates, taxes and fees, strike etc. require a lot of money.

If you have OD limit or overdraft facility from bank, it will help you to meet all these unexpected expenses on time and your business runs smoothly.

OD Limit Used As A Great Debt Consolidation Tool: As a businessman you may have taken so many small personal loan, business loan, gold loan etc. from bank or NBFC. These loans offered by bank or NBFC for short period of time and on high rate of interest resulting on heavy EMI. These EMI may affect your business liquidity also.

You can take OD limit or overdraft facility from bank. The rate of interest on OD limit or overdraft facility is comparatively lower than personal loan or business loan. You can pay of all your personal loan or business loan liability from your OD limit. Here you have to pay only interest on amount overdrawn by you. This will increase liquidity of your business and thus you can utilize the excess amount for the growth of your business.

There are two types of overdraft facility or OD limit provided by the bank i.e. (i) secured overdraft facility and (ii) unsecured overdraft facility.

Secured Overdraft Facility Or OD Limit: When borrower offers or mortgaged an assets to the bank as a security to avail overdraft facility or OD limit. It is called secured overdraft facility or OD limit. The assets could be deposits in the bank, residential, commercial or industrial property or shares.

If you are not able to payback overdrawn amount of the bank, then bank may stop your secured overdraft facility and bank has right to recover the overdrawn amount by selling or liquidate your assets. If in any case bank is not able to recover the whole overdrawn amount then you are still liable to pay the balance amount to bank.

Unsecured Overdraft Facility Or OD Limit: When bank offers overdraft facility or OD limit without any assets or security to the borrower. It is called unsecured overdraft facility or OD limit. Generally bank offers unsecured overdraft facility to his existing customer who has good and long relationship with the bank.

Overdraft facility or OD limit is an agreement between borrower and the lender (bank or NBFC) that regulates the term of overdraft facility or OD limit. All the bank or NBFC have their own loan eligibility criteria but there are some common loan eligibility criteria which borrower has to fulfill to avail overdraft facility or OD limit from bank or NBFC.

Following are some key important factors which would be checked by bank or NBFC to accept or reject the overdraft facility or OD limit application:

  • Age: At the time of cash credit or CC limit application, applicant must be 21 years or above but not more than 65 years.
  • Business Continuity: Bank or NBFC checks business continuity of borrower who is applying for overdraft facility or OD limit. A borrower should be in the business for the last three years to avail overdraft facility or OD limit.
  • Cibil Score: A overdraft facility or OD limit borrower, who is having good cibil score will get quick loan from the bank or NBFC. Cibil score is a decisioning factor for sanctioning or rejecting overdraft facility or OD limit application.
  • Valid, Clear And Marketable Title Deeds Of Property: A overdraft facility or OD limit borrower must be having valid, clear and marketable title deeds of entire chain of the property along with approved sanction plan or map. The ownership and physical possession of the property lies with the borrower only.

What are the documents required for overdraft facility or OD limit?

Documents required for overdraft facility or OD limit depends upon the type of business of the borrower.
Documents required for different types of business are as follows:

KYC Documents

  • Pan Card
  • Aadhar Card
  • Voter ID Card
  • Passport
  • Copy of Rent Agreement/ Registered Lease Deed
  • Latest Month Electricity Bill
  • Copy of VAT/ Sales Tax, GST, Import-Export or any other registration Certificate
  • Latest Office Address proof i.e electrcity bill, rent agreement etc.
  • Company Profile on the Letterhead of the firm

Income Documents

  • Latest 3 year ITR with computation of Income including P & L a/c, balancesheet
    with their schedule and annexures duly certified by CA
  • Form No. 3 CA & 3 CD in case of audited balance sheet
  • Latest 2 years VAT/ Sales Tax/ GST return
  • Latest 2 years form 26AS if applicable

Bank Statements

  • One year up to date all the saving and current account statement

Loan Documents

  • Copy of Sanction Letter
  • Up to date loan account statement
  • Loan repayment schedule
  • 12 Months up to date bank statement showing repayment of the loan
  • Loan closure proof if loan is closed

Property Documents

  • Copy of previous chain of property papers
  • Copy of approved sanction plan or Map
Individual Partners Document

KYC Documents

  • Pan Card
  • Aadhar Card
  • Voter ID Card
  • Passport
  • Latest Month Electricity Bill
  • Copy of Rent Agreement/ Registered Lease Deed

Income Documents

  • Latest 3 year ITR with computation of Income
  • Latest 2 year form 26AS if applicable

Bank Statements

  • One year up to date all the saving account statement

Loan Documents

  • Copy of Sanction Letter
  • Up to date loan account statement
  • Loan repayment schedule
  • 12 Months up to date bank statement showing repayment of the loan
  • Loan closure proof if loan is closed

Property Documents

  • Copy of previous chain of Property papers
  • Copy of approved sanction plan or Map
Partnership Firm Document

KYC Documents

  • Pan Card
  • Copy of VAT/ Sales Tax, GST, Import-Export Certificate or any other registration certificate
  • Copy of Partnership Deed
  • Latest office address proof i.e. electricity bill, rent agreement etc.
  • Company Profile on the Letterhead of the firm

Income Documents

  • Latest 3 year ITR with computation of Income including P & L a/c, balancesheet with their schedule and annexures duly certified by CA
  • Form No. 3 CA & 3 CD in case of audited balance sheet
  • Latest 2 years VAT/ Sales Tax/ GST return
  • Latest 2 years form 26AS if applicable

Bank Statements

  • One year up to date all the current account statement

Loan Documents

  • Copy of Sanction Letter
  • Up to date loan account statement
  • Loan repayment schedule
  • 12 Month of upto date bank statement showing repayment of the loan
  • Loan closure proof if loan is closed
Individual Directors Document

KYC Documents

  • Pan Card
  • Aadhar Card
  • Voter ID Card
  • Passport
  • Latest Month Electricity Bill
  • Copy of Rent Agreement/ Registered Lease Deed

Income Documents

  • Latest 3 years ITR with computation of Income
  • Latest 2 years form-16 with 26AS if applicable

Bank Statements

  • One year up to date all the saving account statements

Loan Documents

  • Copy of Sanction Letter
  • Up to date loan account statement
  • Loan repayment schedule
  • 12 Months up to date bank statement showing repayment of the loan
  • Loan closure proof if loan is closed

Property Documents

  • Copy of previous chain of property papers
  • Copy of approved sanction plan or Map
Private Limited or Limited Company Documents

KYC Documents

  • Pan Card
  • MOA & AOA
  • Copy of VAT/ Sales Tax, GST, Import-Export Certificate or any other registration certificate
  • Latest office address proof i.e. electricity bill, rent agreement etc.
  • Company Profile on the Letterhead of the Company
  • List of director & shareholder with their shareholding pattern duly certified by CA.
  • Latest form-32

Income Documents

  • Latest 3 year ITR with computation of Income including P & L a/c, balancesheet with their schedule and annexures duly certified by CA
  • Form No. 3 CA & 3 CD in case of audited balance sheet
  • Latest 2 years VAT/ Sales Tax/ GST return
  • Latest 2 years form 26AS if applicable

Bank Statements

  • One year up to date all the current account statement

Loan Documents

  • Copy of Sanction Letter
  • Up to date loan account statement
  • Loan repayment schedule
  • 12 Month of up to date bank statement showing repayment of the loan
  • Loan closure proof if loan is closed

What is the rate of interest of overdraft facility or OD limit in 2018?

Currently the rate of interest of overdraft facility or OD limit is based upon marginal cost of lending rate (MCLR) plus margin on the MCLR. Bank or NBFC offers lowest or competitive rate of interest to attract prospective borrowers, due to stiff competition between bank or financial institutions.

The rate of interest on overdraft facility or OD limit varies in between 9.50% p.a. to 18% p.a. It is always advisable to compare overdraft facility or OD limit interest rates of different bank and NBFC and chose the best one which suits your need.

OR

You may take an expert advice of LOAN ON PHONE professional consultants who will help you to choose best bank who offers you lowest rate of interest on overdraft facility or OD limit with ZERO / nominal bank processing fees.

What are the other key factors to be considered before choosing best Overdraft facility or OD limit?

Before taking overdraft facility or OD limit it is advisable to consider following factors:

  • OD Limit Loan Eligibility: Check your overdraft facility or OD limit eligibility, that how much OD limit loan you can borrow from bank or financial institutions based on your income eligibility and market value of the property. All the banks or financial institutions have different product and policy to calculate the loan eligibility. Loan eligibility of a borrower also depends upon so many other factors like age, income, cibil score, work profile, financial stability, market value of the property, loan to value (LTV) ratio etc.
  • OD Limit Rate Of Interest: Before taking overdraft facility or OD limit, check rate of interest offered by different bank or financial institutions. If rate of interest is high then interest is also high, so choose the bank which provides lower rate of interest so that OD limit interest will not put extra loads on your business.
  • OD Limit Loan Processing Fees: Bank or financial institution charges loan processing fees to process your overdraft facility or OD limit application. There are two types of charges one is loan processing fees and the other is loan administration charge.

    Loan processing fee charged by the bank or financial institutions to process your loan application, valuation of the property, legal verification of the property, residence verification, office verification, due-diligence of income documents and bank statement etc. It could be a fixed percentage of your loan amount or a fixed amount.

    Loan administration charges are taken by bank or financial institutions to maintain your OD account after disbursement. Some bank or financial institutions took upfront fees however some of them charged after sanction of the loan amount. So check OD limit processing charges of bank or financial institutions deeply before applying for the loan.

  • OD Limit Loan Foreclosure Charges: When borrower decided to close his overdraft facility or OD limit before the completion of loan tenure or period. Bank or financial institutions may levy 1% to 5% foreclosure charges on overdraft facility loan amount.

    If you apply through LOAN ON PHONE, our professional consultant will assist you in negotiating with the banks and may get ZERO foreclosure charges for you.

  • Overdraft Facility or OD Limit Terms And Conditions: Bank or financial institutions laid down several conditions related to balance transfer of overdraft facility or OD limit to another lender, cheque bouncing charges, late payment charges, interest on late payment etc. It is advisable to read all the terms and conditions before choosing the best bank.
  • Overdraft Facility or OD Limit Repayable On Demand At Any Time: As there is no EMI so there is no repayment, if limit is used within the overdraft limit. But overdraft facility or OD limit is repayable on demand by the bank at any time.
  • No Minimum Monthly Payment Of OD Limit: As there is not any fixed EMI, so there is no minimum monthly payment required for OD facility subject to limit utilized within the overdraft limit. But if OD limit account goes into excess, you have to repay excess amount immediately. If the excess amount is not repaid immediately, bank may stop the overdraft facility and you have to pay full outstanding amount in a specified time. If bank or NBFC recalls your overdraft facility or OD limit then it may affect your credit rating or cibil score adversely.
  • OD Limit Penalty Interest Charges: When overdraft facility over utilized by the borrower and bank or NBFC approves the overdrawn limit, then the interest charged on the excess amount is higher than the agreed OD limit rate of interest. This higher rate of interest is called penalty interest rate or charges.

Who are the best overdraft facility or OD limit providers?

BEST OD LIMIT PROVIDERS
Allahabad Bank OD Limit HSBC Bank OD Limit
Andhra Bank OD Limit ICICI Bank OD Limit
Axis Bank OD Limit IDBI Bank OD Limit
Bank Of Baroda OD Limit Indian Bank OD Limit
Bank Of India OD Limit Indian Overseas Bank OD Limit
Bank Of Maharashtra OD Limit IndusInd Bank OD Limit
Canara Bank OD Limit Jammu & Kashmir Bank OD Limit
Central Bank Of India OD Limit Karnataka Bank OD Limit
Citi Bank OD Limit Kotak Mahindra Bank OD Limit
Corporation Bank OD Limit Oriental Bank Of Commerce OD Limit
Dena Bank OD Limit RBL Bank OD Limit
Deutsche Bank OD Limit State Bank of India OD Limit
DHFL Dropline OD Limit Standard Chartered Bank OD Limit
Federal Bank OD Limit Tata Capital Dropline OD Limit
HDFC Bank OD Limit Uco Bank OD Limit
Syndicate Bank OD Limit Union Bank Of India OD Limit
Yes Bank OD Limit Vijaya Bank OD Limit

Why I should take Overdraft facility or OD limit from loan on phone and how do we help?

Today internet is the source of information and there is a lot of information available about the overdraft facility or OD limit on internet and we have also tried to give you some information about overdraft facility or OD limit but the most important question is that, Why I should take overdraft facility or OD limit from LOAN ON PHONE and how do we help you in choosing best overdraft facility or OD limit?

Almost all the banks or financial institutions claims to offer you the best deal. Most of the people confused with the various offers and deal, so we are here to help you to choose the best overdraft facility or OD limit.

About LOAN ON PHONE

LOAN ON PHONE is the one stop solution for all your financial needs. We are into this business for more than a decade. LOAN ON PHONE will analyze different loan offers and suggest you best deal on Overdraft facility or OD limit with great customer services. Our expert provides best deal on wide range of products to the customer to take right decision.

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