Overdraft Limit

An overdraft limit is a flexible credit facility that allows individuals or businesses to withdraw funds beyond their available account balance, up to a pre-approved limit. It acts as a short-term financial cushion, ensuring uninterrupted cash flow for personal or business needs.

The key advantage of an overdraft is that you pay interest only on the amount utilized, not on the full sanctioned limit. This makes it a cost-effective borrowing option compared to traditional loans. The facility can be secured against assets like property, fixed deposits, gold, receivables, or stock, or offered unsecured based on creditworthiness.

Overdraft limits are ideal for managing emergencies, business working capital, seasonal expenses, or unexpected payments. With quick access, minimal documentation, and flexible repayment, overdrafts provide financial stability and convenience whenever you need extra liquidity.