Interest on bank overdraft
An overdraft lets you use additional funds through your transaction account till the permitted overdraft limit. The rate of interest on bank overdraft is evaluated only on the withdrawn account from the total limit of sanctioned. It might differ from bank to bank and also depend on the amount of overdraft.
Interest rate and processing fee on Bank O/D offered by Top banks
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The rate of interest for a bank overdraft facility is 9.00% onwards.
Bank name Interest rate Processing fee
Yes Bank Ltd.
8.00%
1%
Axis bank
7.50%
1%
Canara Bank
11.70%
1%
Indian Bank
9.50%
1%
IndusInd bank
9.00%
1%
Kotak Mahindra Bank
7.25%
1%
Punjab National Bank
8.70%
1%
State bank of India
8.45%
1%
UCO Bank
9.40%
1%
United bank of India
10.75%
1%
South Indian Bank Ltd.
10.70%
1%
IDFC First Bank
9.50%
1%
ICICI Bank Ltd.
7.75%
1%
HDFC Bank Ltd
7.25%
1%
Features of bank overdraft
- Bank overdraft account is a facility that can be used by maintaining any current or saving account.
- The tenure of repayment is determined by the lenders.
- Overdraft facility is for the short term that is provided by the lenders for a specific duration of time.
- Various private banks offer bank overdraft facilities for both the account i.e., salary account and saving account.
- The money given on the basis of repayment history, account value, or credit score of the borrower.