Overdraft Facility Loan
An overdraft facility is a financial tool in which the applicant can withdraw an amount from their current or savings account, even though their account balance becomes zero. There are several banks, Non-Banking Financial Companies (NBFCs), and financial institutions that offer overdraft facility loans.
It is a type of short-term loan which is to be paid back in a specific period, as required by the financial bodies. Banks may levy the rate of interest that applicants need to pay back, as per the terms and conditions of the banks.
Features and benefits of overdraft facility loan
Interest rate: - overdraft facility loan The rate of interest charged on the borrowed amount used for overdraft. It is evaluated on a daily basis, and it is billed at the end of the month.
No additional charges: - The interest rate charged on the loan is accessible to the amount withdrawn. If the borrower wants to make prepayment on their borrowed principal amount, therefore they arouse zero hidden charges on it.
Flexible repayment tenure: - After getting overdraft facility, the individual can choose to pay the dues & when it is suitable for them if they do it within the repayment tenure overdraft facility.