What is Personal Loan 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.

Note: While Bajaj Finance Ltd does not offer an overdraft facility, we extend similar benefits through our Flexi Personal Loans.

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.

An overdraft facility acts as a short-term financial safety net for salaried individuals who may need extra funds from time to time. The approved overdraft limit usually depends on factors such as monthly income, credit history, repayment capacity, and your relationship with the lending institution. Before applying for an overdraft facility, it is important to understand the terms and conditions carefully, as limits and features can vary.
 

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.
 

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.

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 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.
 

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