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Rs. 40,000 - Rs. 55 lakh
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Key takeaways
A personal loan overdraft facility provides flexible access to funds. Bajaj Finance offers Flexi Loans, which provide similar withdrawal and interest benefits rather than a conventional overdraft facility.
- Borrow an amount ranging from Rs. 40,000 to Rs. 55 lakh.
- Interest rates range from 10% to 30.5% p.a.
- Pay interest only on the amount withdrawn under eligible Flexi Loan variants.
- Make multiple withdrawals from the available limit without submitting fresh applications.
- The overdraft facility does not require collateral or a guarantor.
Note: While Bajaj Finance Ltd does not offer an overdraft facility, we extend similar benefits through our Flexi Personal Loans.
What is an overdraft facility?
An overdraft facility allows you to withdraw money beyond your available account balance, up to a pre-approved limit. With an overdraft facility, you can use funds as needed and repay them flexibly, paying interest only on the amount you actually use. This makes it a convenient option for managing short-term cash needs without applying for a new loan each time.
How does an overdraft facility work?
An overdraft facility allows you to withdraw funds from a sanctioned limit after the lender assesses your eligibility and financial requirements. Once approved, you can access funds up to the available limit when an eligible expense arises, without submitting a new loan application for each withdrawal. Interest is generally charged only on the amount utilised, rather than the entire sanctioned limit. For example, if you withdraw only part of the available limit, interest applies to the amount withdrawn. You can make multiple withdrawals as long as they remain within the available limit and repay the utilised amount according to the agreed terms. Bajaj Finance Flexi Loans offer similar flexibility in accessing funds and paying interest on the utilised amount, but they are different from conventional overdraft facilities.
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.
- Instant access to funds
What is an overdraft facility limit?
An overdraft facility limit is the maximum amount you can withdraw beyond your available account balance. The lender determines this limit based on factors such as income, credit profile, repayment capacity and existing obligations. It helps you manage eligible short-term funding needs without applying for fresh credit each time.
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.
Alternative to Overdraft Facility: Bajaj Finance Flexi Personal Loan
With the Bajaj Finance 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 withdrawn from the entire sanctioned limit. The Flexi Hybrid Term Loan variant comes with the added advantage of paying interest-only EMIs during the initial tenure of up to 2 years. You can also use our personal loan EMI calculator to calculate your EMIs beforehand.
Check your eligibility for personal loan using just mobile number and OTP – 100% online process.
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.
Also Check:
| How to Apply for an Overdraft | Difference Between Personal Loan and Personal Overdraft Loan |
Key offerings: 3 loan types
Personal loan interest rate and applicable charges
Type of fee | Applicable charges |
Rate of interest per annum | 10% to 30.5% p.a. |
Processing fees | Up to 4.13% of the loan amount (inclusive of applicable taxes). |
Flexi Facility Charge | Term Loan – Not applicable Flexi Loans –Up To Rs 1,999 To Up To Rs 18,999/- (Inclusive Of Applicable Taxes) |
Bounce charges | Rs. 700 to Rs. 1,200/- per bounce “Bounce charges” shall mean charges for (i) dishonor of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonor of payment mandate or non-registration of the payment mandate or any other reason. |
Part-prepayment charges | Full Pre-payment:
Part Pre-payment
|
Penal charge | Delay in payment of instalment(s) shall attract Penal Charge at the rate of up to 36% per annum per instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
Stamp duty (as per respective state) | Payable as per state laws and deducted upfront from loan amount. |
Annual maintenance charges | Term Loan: Not applicable Flexi Term (Dropline) Loan: Up to 0.295% (Inclusive of applicable taxes) of the Dropline limit (as per the repayment schedule) on the date of levy of such charges.
Up to 0.472% (Inclusive Of Applicable Taxes) Of The Dropline Limit During Initial Tenure. Up to 0.295% (Inclusive Of Applicable Taxes) Of Dropline Limit During Subsequent Tenure |
| Credit guarantee scheme fee | Up to 1.18% p.a. (pro-rated daily till 31st March) (inclusive of all applicable taxes) of the loan amount |
| Credit guarantee scheme renewal fee | Up to 1.18% p.a. (inclusive of all applicable taxes) on the outstanding loan amount as on April 01 of the subsequent Financial Year. *Renewal Fee to be collected only for 3 subsequent financial years. **If the Remaining Tenure is less than 12 months, the CG Fee in subsequent years shall be charged prorated. |
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Frequently asked questions
Overview
Application
Eligibility
The overdraft facility can be beneficial for managing short-term cash flow needs and emergencies, providing flexibility and convenience in accessing funds as needed.
Whether a loan or overdraft is better depends on individual financial needs and circumstances. Loans offer fixed amounts with structured repayments, while overdrafts provide flexibility but may carry higher interest rates.
Risks of overdrafts include accruing high-interest charges if not managed effectively, potential dependency leading to financial strain, and the risk of overdrawing beyond means, resulting in debt accumulation.
An overdraft allows you to withdraw more than your bank balance. For example, if your balance is Rs. 5,000, you can withdraw Rs. 10,000 with a Rs. 5,000 overdraft.
You should choose an overdraft facility when you need flexible access to funds for short-term or recurring expenses. It may be useful when the exact amount or timing of your financial need is uncertain, as interest is generally charged only on the amount utilised. Review the applicable rate, fees, repayment terms and your repayment capacity before proceeding.
You can repay an overdraft loan by depositing funds into your account. The borrowed amount plus interest is adjusted automatically as you credit your account.
Yes, timely repayments can improve your CIBIL score, while defaults or overuse of your overdraft limit may negatively impact your credit profile.
You can check your OD limit through internet banking, your bank’s mobile app, or by contacting your bank branch directly.
Individuals with a stable income, good repayment history, and an active bank relationship are usually eligible for an overdraft loan. Lenders assess credit profile, income stability, and repayment capacity before approval.
An overdraft facility generally allows multiple withdrawals, provided the total amount utilised remains within the sanctioned limit. Interest is typically charged only on the amount used, as per the agreed terms.
Yes, existing personal loan customers may be eligible for an overdraft facility, depending on the lender’s eligibility criteria and assessment. The availability of the facility may also depend on factors such as repayment history, income, and credit profile.
An overdraft facility may be suitable for short-term or occasional funding needs. For long-term borrowing, a personal loan may be more suitable, depending on the borrower’s requirements, repayment capacity, and applicable terms.
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Disclaimer
Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.
For customer support, call Personal Loan IVR: 7757 000 000