How to get an Overdraft Facility For Personal Use

Securing an overdraft facility for personal use can be a strategic financial tool, providing flexibility when you need it most. Whether you want to fulfil unexpected expenses, managing cash flow fluctuations, or seeking an extra layer of financial security, a personal loan overdraft facility can offer a valuable safety net. Here, we'll explore the major considerations and steps involved in obtaining an overdraft for personal use. Here, we'll understand the essentials of an overdraft facility to help you make informed decisions. With its adaptability and ease of use, an overdraft can serve as a practical resource for addressing short-term financial challenges. Let's understand the details of how you can navigate the process of acquiring an overdraft facility tailored to your personal financial needs.

What is an Overdraft Facility

Banks offer financial arrangements known as overdraft facilities, which enable account holders to withdraw funds more than what is available on their account subject to a pre-established limit. It acts as a short-term credit extension, offering flexibility for individuals facing occasional cash flow challenges. Interest is typically charged only on the amount overdrawn, making it a convenient solution for covering unforeseen expenses or managing temporary financial gaps. Overdrafts are often linked to checking or current accounts, providing account holders with immediate access to additional funds when needed. It's important to note that while overdrafts can be useful, responsible usage and understanding associated fees and terms are crucial to avoid financial strain.

Eligibility Criteria for Overdraft Facility

 

Nationality	Indian Citizen
Employment criteria	Applicant must be a salaried individual employed with a reputable private or public firm or is a self-employed professional
Age	The minimum age of the applicant should be 21 years but should not exceed the age limit of 58 years
Income	The minimum monthly income of the applicant should be Rs. 30,000
Credit Score	CIBIL score should be 700 or more

Documents Required for Overdraft Facility

 

ID Proof	PAN Card/ Aadhar Card/ Passport/ Driving Licence/ Voter’s ID
Proof of Residence	Passport/Driving License/Electricity Bill/ Telephone Bill/ Aadhar Card/ Voter’s ID
Income Proof	Salary slip of past 3 months/ Bank Statement
Photograph	2 passport-size photographs

How To Apply for Overdraft Facility

●       Download the LoanTap app through the Play Store

●        On the home page, click on “Personal Overdraft”

●       Click on the “Apply Now” button

●       Enter details like your Email ID, Current city of residence,  pin code, employment type, monthly income, Contact number

●       Click on Get OTP

●       Submit the required document

●       After the application is approved the amount will be disbursed within 24-36 hours.

Conclusion

Obtaining a personal loan overdraft facility for personal use can be a strategic financial move, offering a safety net for unforeseen expenses or temporary cash flow challenges. By understanding the concept of overdrafts and carefully selecting a financial institution that aligns with your needs, you can navigate the process more effectively. It's crucial to approach overdrafts responsibly, recognising that they are a form of short-term credit with associated fees and interest. Regularly monitoring your account, staying within the predetermined limit, and being mindful of repayment are key factors in making the most of this flexible financial tool. LoanTap provides an overdraft facility that, when used judiciously, can provide peace of mind and financial flexibility, offering a convenient solution for managing the ebb and flow of personal finances.