Bank of Maharashtra overdraft loan

The Bank of Maharashtra offers two overdraft facilities to meet your varying financial needs. This page provides a comprehensive overview of both options. Whether you're a salaried individual or a depositor with existing fixed deposits, explore how to leverage the bank's overdraft facilities. Learn about each scheme's eligibility requirements, features, benefits, and application processes. Let the Bank of Maharashtra Overdraft Facility empower you to manage your finances effectively.

Features of Personal Loan Overdraft Facility

The Salary Gain Scheme can be a helpful tool for salaried individuals who need occasional access to extra funds and want to avoid the high interest rates of a personal loan; some of the features of this loan include:

• It provides a readily available source of extra cash whenever needed, up to your credit limit.
• You only pay interest on the amount you use, unlike with a personal loan, in which you pay interest on the entire amount sanctioned.
• You can save money on interest charges compared to a personal loan, which typically has a higher fixed interest rate.
• The application process is generally faster than a personal loan, especially for salaried individuals who meet the eligibility criteria.
• Unlike some loan options, you don’t need to pledge any assets as security for the overdraft.
• It provides a buffer to cover unexpected expenses or shortfalls in your monthly income.

Bank of Maharashtra Fees & Charges Overdraft Loan

Here’s a breakdown of the fees and charges associated with the Bank of Maharashtra Overdraft Loan:

• Processing Fee: 0.50% of the overdraft amount per year, with a minimum charge of Rs. 500.
• Interest Rate: This is a floating rate based on the bank’s 1-year RLLR (Retail Lending Rate) with an additional spread of 3.15%. 

Who is Eligible for an Overdraft in the Bank Of Maharashtra?

Here’s a breakdown of who is eligible for an overdraft under the Bank of Maharashtra overdraft loan:

• Should have employment under Government/State/PSU employees Or reputed Private Companies/Public Limited Companies/MNCs
• Minimum service: 1 year in permanent employment
• Minimum age: 21 years
• Maximum age: Must be within 3 years of retirement
• Minimum salary: Rs. 25,000 per month (take-home salary)
• Debt to income ratio: Existing debts + proposed OD interest should not exceed 65% of gross monthly salary (for government employees) or 60% (for non-government employees).

Bank of Maharashtra Documents Required for Loan Application

Collect the necessary documents, which likely include:

• Salary account statements for the past few months (maintained with Bank of Maharashtra if you’re a non-government employee)
• Proof of employment (ID card, salary slips)
• KYC documents (PAN card, Address proof, etc.)
• Employer NOC (might be required)

The Process to Avail of Bank of Maharashtra Overdraft Loan

The Bank of Maharashtra website doesn’t explicitly lay out the step-by-step process for applying for an overdraft loan. However, based on the general loan application process, here’s a possible roadmap:

• Head to your nearest Bank of Maharashtra branch.
• Discuss your needs and express your interest in the Salary Gain Scheme to a bank personnel. 
• Fill out the application form for the Salary Gain Scheme as directed and submit it along with the required documents.
• The bank will likely verify your employment details with your employer. 
• Once verified and approved, the bank will disburse the sanctioned overdraft limit into your account.