Indian Bank overdraft loan

The Indian Bank Overdraft Facility addresses the unpredictable nature of financial management. It caters to the immediate need for extra funds to bridge cash flow gaps without the typical waiting period of traditional loans. This facility allows account holders to overdraw up to a pre-approved limit, charging interest only on the amount used, thereby providing a cost-effective and flexible financial solution. With features like quick fund access, flexible repayments, and interest savings on unused funds, Indian Bank's overdraft facility stands out as a pragmatic choice. 

Features Of Personal Loan Overdraft Facility

The personal loan overdraft facility is a flexible borrowing option, distinct from traditional personal loans. Let’s get into its unique advantages:

• Borrowers can withdraw funds up to an approved limit as needed.
• Interest is charged only on the overdraft amount, not the approved limit.
• With no fixed EMI, borrowers can repay at any time during their tenure. 
• Once the overdraft limit is established, funds can be swiftly accessed without the hassle of a new loan application for each withdrawal. 
• The overdraft facility can be renewed annually (subject to review), providing a continuous line of credit.
• After the initial setup, accessing additional funds usually requires minimal to no other documentation.
• Generally, there are no charges for repaying the borrowed amount earlier than the due date, unlike some personal loans.

Indian Bank Fees & Charges Overdraft Loan

Here’s a redrafted version incorporating the provided information:

• A 10% margin is applied to the accrued value of the deposit for the overdraft facility.
• The overdraft (OD) facility’s interest rate is 1% above the applicable Term Deposit (TD) pledged rate..
• For Indian Bank staff and retirees, the applicable overdraft interest rate is 0.50% above the deposit rate of their Term Deposit.

Who is Eligible for an Overdraft at Indian Bank?

Eligibility for an overdraft at Indian Bank includes:

• Employees of the Government, State Government, PSUs, Listed Companies, and autonomous Bodies whose salaries are credited to savings accounts maintained with the Indian Bank should have received salary credits for at least the past three months. The minimum monthly salary credited should be ₹25,000.
• Other Organisations/Institutions with more than 50 salary accounts with Indian Bank can also be considered under the scheme.

Documents Required for Indian Bank Overdraft Loan 

For a loan application with Indian Bank, the documents typically required may include:

• Identity Proof: PAN Card, Aadhaar Card, Passport, Driving License, or Voter ID card.
• Address Proof: Recent utility bills (electricity, water, gas), Passport, Aadhaar Card, or Voter ID card.
• Income Proof: Recent salary slips for salaried individuals, bank statements (last six months), and income tax returns (ITRs) for the previous 2-3 years.
• Employment Proof: Employment certificate for salaried and self-employed individuals and proof of business existence and profile.
• Asset Proof: Documents related to any assets owned.
• Loan Application Form: The bank provided a properly filled-out loan application form.
• Photographs: Recent passport-sized photographs of the applicant.

Process to Avail of Indian Bank Overdraft Loan

To avail of an overdraft loan from Indian Bank, you can follow these steps:

• Visit your nearest Indian Bank branch or use the online banking platform.
• Complete the overdraft application form with all required details accurately.
• Submit the application form along with all the required documents to the bank.
• The bank will review your application and documents. They may also conduct a verification process.
• Once approved, your account will have an overdraft limit, and you can use the funds as needed.
• Understand and agree to the repayment terms, interest rates, and any charges associated with the overdraft facility.