Loans

What is over draft loan?

adminComments(223)

Generally this over draft loan will not be available in all banks,this loans deals with the name it insists like over draft meaning more than original amount.
For instant if a person have 1 lakh rupees in his savings account and if his over draft limit is 50 thousand rupees then an individual can with draw Rs.150000/- and he have to repay his loan according to agreement of the bank and individual

Over draft loan most of times deal up and should have complete agreement based on employer of that person who is acquiring loan or completely based on his salary capability
For example if a persons individual salary package is around 15 lakhs of his gross then bank may approve loan according to his salary and
can issue over draft loan

Loan arrangement under which a bank extends credit up to a maximum amount (called overdraft limit) against which a current (checking) account customer can write checks or make withdrawals. The most common form of business borrowing, an overdraft is a type of revolving loan where deposits (credits) are available for re-borrowing, and interest is charged only on the daily overdraft (debit) balance. It is, however, also a demand loan: the facility can be cancelled (and entire outstanding amount ‘called’) at any time by the lender at its discretion, without any warning notice or explanation. If the overdraft is secured by an asset or property, the lender has the right to foreclose on the collateral in case the account holder does not pay.

admin

Related Articles
Loans

Adani Group approaches a private bank for Rs 14,000 crore loan in expansion of future projects

admin

Adani Group came near to the State Bank of India (SBI) for a loan worth Rs 13,000 crore to build a new plant in state of Gujarat. The new facility is being planned to manufacture of polyvinyl chloride (PVC) from coal, a Mint report stated. The total cost of setting up the project is expected around […]
Loans

What are the benefits of taking news credit and debit cards of public and private sector banks

admin

Debit and credit card rules extended to some extent after getting a lots of representations from different industry sectors. The Reserve Bank of India (RBI) has again extended the debit and credit card token rule deadline to September 30.The Reserve Bank stated that the industry stakeholders had stated some issues related to the implementation of the […]
Loans

What in micro finance loans? Main reason providing these loans

admin

Micro Units Development & Refinance Agency Ltd. (MUDRA) is a new institution set up by Government of India to provide funding to the non-corporate, non-farm sector income generating activities of micro and small enterprises whose credit needs are below ₹10 Lakh. Main agenda of micro finance loans is to promote small scale business which are […]

223 thoughts on “What is over draft loan?”

Leave a Reply

Your email address will not be published.