What is Personal Loan Overdraft Facility?

An overdraft facility lets you withdraw money beyond your account balance, up to an approved limit. You can use and repay the funds as needed, paying interest only on what you use. This flexible option helps manage your finances without taking a new loan every time.

Features of overdraft facility

An overdraft lets you spend more than what’s in your account, giving you a helpful financial backup. Here’s what makes it convenient for salaried people:

• Borrow what you need, when you need it — no fixed limits on each withdrawal.
• Funds available right away — no waiting around for approvals.
• Interest only on money you use — saving you from unnecessary charges.
• Repay at your own pace — no strict monthly EMI schedules.
• No penalty for paying early — clear your dues without extra fees.
• Just a small monthly minimum payment — keeps your account in good standing.
• Can be shared with a co-borrower — borrow together if needed.

Benefits of using an overdraft facility

• Instant access to funds
  You can withdraw more than your available balance, giving you immediate financial support in emergencies or unexpected situations.
• Interest only on utilised amount
  Interest is charged only on the amount you use, not on the total sanctioned limit—helping you save on unnecessary costs.
• Flexible repayment
  There are no fixed EMIs; you can repay the borrowed amount partially or in full as per your convenience and cash flow.
• No collateral needed
  Unsecured overdraft options are available, meaning you don’t have to pledge any assets or security to access funds.
• Manages cash flow gaps
  Helps both individuals and businesses handle temporary shortages of funds, especially during billing delays or slow income periods.
• Revolving credit
  Once approved, you can use the funds multiple times within the credit limit, without the need for reapplying each time.
• Quick application
  Get instant overdraft approvals through a simple, digital application process with minimal paperwork involved.
• Can improve credit score
  Responsible usage and timely repayments can improve your credit history and making it easier to get loans in future.

Overdraft limit for salaried individuals

Overdraft facility is like a short-term safety net for salaried individuals who need extra funds. It depends on factors like your monthly income, credit history, your repayment capacity and how strong your relationship with the organisation. Before applying, make sure you understand the terms and conditions as it may differ.

How overdraft facility work?

An overdraft facility allows users to withdraw more funds than what is available in their account, up to a certain limit. It helps in handling unexpected expenses or short-term financial gaps. Interest is charged only on the amount used and not on the entire limit. It also offers flexible repayment options.

Read more: - How to apply for an overdraft

Types of overdraft facility

Below are a few types of overdraft facilities:

• Authorised overdrafts
  In this account holders can withdraw more money than what's in their account within the specified limit.
• Unauthorised overdrafts
  This occurs when withdrawals more than your specified limit without any approval. It can lead to penalties.
• Overdraft against property
  Get an overdraft limit by using your assets or property as collateral.
• Overdraft against fixed deposits
  Secure a line of credit using your fixed deposits as collateral. The overdraft limit is typically a percentage of the fixed deposit value.
• Overdraft against insurance policy
  Utilise the surrender value of an insurance policy to avail of an overdraft facility. The policy serves as collateral, providing a convenient and quick financing option.
• Overdraft against equity
  Leverage the value of your equity investments to secure an overdraft. The limit is determined by the market value of the stocks, offering liquidity without selling the holdings.
• Overdraft against salary
  Based on your income and salary you will get overdraft facility to handle unexpected expense.

Bajaj Finserv Flexi Personal Loan

With the Bajaj Finserv Flexi Loans, you can make multiple withdrawals from your loan limit whenever you need funds and prepay the loan at your convenience. The best part is that you need to pay interest only on the amount you have utilised from the entire sanctioned limit. The Flexi Hybrid Loan variant comes with the added advantage of paying interest-only EMIs during the initial tenure. You can also use our personal loan EMI calculator to calculate your EMIs beforehand.

Benefits of a Flexi Personal Loan

Take a quick look at the advantages 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 these benefits of the personal loan apply for the Flexi facility offered by Bajaj Finance Limited.

Note: While we do not offer an overdraft facility, we extend similar benefits through our Flexi Personal Loans. You can read more about it here.

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