Bank Overdraft Facility: Many types of facilities are provided to the customers by the bank. If there is zero balance in your account, you can still withdraw money from your account. Do you know about this facility of the bank? If you do not know about it then today we will tell you about it. The name of this facility is Overdraft Facility.
NBFCs provide a special facility to their customers, in which customers can withdraw more money even if they have less money in the bank. This facility is called overdraft facility.
Overdraft facility is provided by both government and private banks. Overdraft is linked to the customer’s savings or current account.
How much amount of overdraft will the customer get and what will be its limit? A decision regarding this is taken by the bank. This limit may be different for all customers.
Under the overdraft facility, you will have to repay the amount you withdraw within a specific time. You also have to pay interest on this money. In overdraft facility, the interest amount is calculated on daily basis.
The customer availing overdraft facility must be a citizen of India. Apart from this, his age should be between 21 years to 65 years. Your CIBIL score of the customer should be good, only then the customer can get this facility.
Before applying for overdraft facility, be sure to know about the processing fees. Some banks also charge processing fees for this service. Some banks provide this facility to pre-approved customers. At the same time, many customers have to apply for this.
Let us tell you that this facility of the bank is much cheaper than a personal loan. In this you have to pay less interest as compared to loan.
