Unsecured OD Limit Features

Features and Benefits of our Unsecured OD Limit

• Adjustable Withdrawal Limit: The withdrawal limit progressively decreases each month from the initially sanctioned amount.
• Secured and Unsecured Options: Available in both secured and unsecured loan variants.
• No Collateral Required: The unsecured option eliminates the need for collateral submission.
• Daily Calculated, Monthly Charged Interest Rate: Interest is calculated on a daily basis but charged on a monthly basis.
• Credited Exclusively to Current Accounts: The borrowed amount is credited only to current accounts.
• Flexible Usage Intervals: Usable on a monthly, quarterly, half-yearly, or yearly basis.
• Limit Duration: Typically assigned for 1 – 15 years, with variations across different banks.

Eligibility Criteria for Unsecured OD Limit

• Eligibility criteria for a dropline overdraft loan may differ among financial institutions, but certain entities can generally avail of this facility if they meet the criteria set by the institution. Common entities eligible for this facility include private limited companies, sole proprietors, self-employed professionals, entrepreneurs, and partnership firms.

It's crucial to note that entities beyond those mentioned above may also qualify for this facility, and individuals can check their eligibility by visiting the financial institution's website.

Typically, eligibility criteria set by financial institutions revolve around factors such as age at the time of availing the facility and at the end of the tenure, turnover and profitability of the business, business vintage, and proof of office/residence. However, these criteria may vary between institutions, emphasising the importance of checking eligibility before applying. This ensures a seamless application process and enhances the likelihood of approval.

To avail of the benefits of overdraft facilities offered by banks and financial institutions, individuals must meet specific eligibility criteria, including: