How to apply for an overdraft

An overdraft facility is a flexible financial arrangement that allows you to withdraw more funds than your available account balance, up to a pre-approved limit. It essentially acts as a short-term credit line, helping individuals and businesses cover urgent expenses or manage temporary cash flow gaps with ease.

Unlike traditional loans, an overdraft loan doesn’t require a separate loan application every time you need funds. Instead, the approved limit is linked directly to your existing savings or current account, enabling quick and easy access to money whenever required.

For salaried individuals, a personal overdraft loan can be particularly useful. It offers immediate liquidity during emergencies like medical expenses, utility bills, or unexpected travel needs. Since the interest is charged only on the utilised amount and for the duration of use, it often works out to be more cost-effective than a standard loan.

If you’re looking for a convenient way to meet short-term financial requirements without the hassle of repeated approvals, an overdraft loan for salaried professionals can be a smart solution. It combines the benefits of easy access, flexible repayment, and interest-on-use, making it a practical choice for day-to-day financial stability.

✅  Check your pre-approved loan offer with phone number and OTP → Apply online in 5 minutes → Receive funds within 24 hours*.

An overdraft facility is a short-term credit that allows you to withdraw funds beyond your account balance, up to a pre-set limit. It’s useful for urgent cash needs. Essentially, it works like an instant overdraft loan, with interest charged only on the amount you use. Regular repayments help you avoid overdraft facility due charges.

1. Check eligibility – Most banks and NBFCs offer overdraft facilities to salaried individuals, business owners, or account holders with a good account history.
2. Choose the type – Decide between a personal overdraft (for salaried individuals) or a business overdraft (for business cash flow needs).
3. Gather documents – Typically required:
   • Identity proof (Aadhaar, PAN, Passport)
   • Address proof
   • Bank statements (last 3–6 months)
   • Income proof or salary slips
4. Apply online or at the branch – Many banks allow you to apply through internet banking or mobile banking. You can also visit the branch for a physical application.
5. Approval & limit sanction – The bank reviews your account and credit history before approving a pre-set overdraft limit.
6. Activation & usage – Once activated, you can withdraw funds up to the approved limit, with interest charged only on the utilised amount.

Also read - Overdraft vs personal loan

A Flexi Personal Loan is a type of personal loan that offers flexible borrowing and repayment options. Unlike a standard personal loan, it allows you to withdraw only the amount you need from an approved limit, repay partially, and reuse the limit as required.

Key features of a Flexi Personal Loan:

• With a Flexi Personal Loan, you only have to pay interest on what you have withdrawn and not the entire sanctioned amount.
• As the amount is pre-sanctioned, you can withdraw from it instantly.
• You can use funds from the loan as per your requirement — for personal, professional, planned, or unplanned needs.
• As this facility simplifies borrowing and repaying, you can use this to build a good credit history and boost your credit score.

To avail of these benefits of the personal loan, apply for the Flexi facility offered by Bajaj Finance Limited.

Applying for an overdraft is a simple and convenient way to manage short-term cash needs. By understanding how the overdraft facility works, applying online, and knowing what to expect after activation, you can use it responsibly to maintain steady cash flow and avoid financial strain.