Business Overdraft Loan
Quick & Easy Application
Purpose: Your data is collected exclusively to check your loan eligibility and securely connect you with your chosen lending partner. We process this information strictly in accordance with RBI guidelines to facilitate your application. We do not sell your data, and it is used exclusively to facilitate your loan application.
A business overdraft loan or an OD loan for business is a credit facility. It lets you withdraw more money (up to an approved limit) than what is available in your current account. You only need to pay interest on the amount you use and for the number of days you use it.
This is a smart solution for businesses that want a flexible way to manage expenses. An overdraft does not require you to borrow a fixed amount for a fixed period. You can withdraw, repay and withdraw again within your sanctioned limit. It gives you complete control over your cash flow.

A Business Overdraft Loan gives you easy access to funds whenever your business needs them.
Here are the features you should know about:
Revolving credit facility for businesses
Choosing a business overdraft facility with My Mudra comes with several advantages:
It can manage your working capital needs, pay suppliers and cover operational expenses instantly.
You should maintain a good credit score. You can get it by paying suppliers and EMIs on time.
Keep your financial records updated. It helps you with easy verification.
Apply for a realistic overdraft limit based on your turnover.
You should avoid multiple applications with different lenders simultaneously.
Use trusted platforms like My Mudra for faster processing and better rates.
Getting a business OD loan through My Mudra is fast and easy:
Here’s a comparison of interest rates, limits and features from leading banks and NBFCs that give you a business overdraft facility:
| Lender | Interest Rate (p.a.) | Overdraft Limit | Processing Fee | Renewal / Tenure |
|---|---|---|---|---|
With My Mudra, you can apply for business overdraft online. We help you to compare lenders, get quick approval and start using your limit instantly.
Take control of your business cash flow today and keep your business running smoothly.
Purpose: Your data is collected exclusively to check your loan eligibility and securely connect you with your chosen lending partner. We process this information strictly in accordance with RBI guidelines to facilitate your application. We do not sell your data, and it is used exclusively to facilitate your loan application.
It is based on your business turnover. It can be from ₹1 lakh to ₹1 crore
The competitive overdraft interest rates start from 9.5% p.a.
It is from 12 months to 36 months. It is renewed annually
Both secured and unsecured options are available
Flexible, repay anytime within the tenure
Instant approval and quick activation
Withdraw funds as much as you need. You can repay when you receive payments from customers.
You only have interest on what you actually use. It is not the entire limit.
Repay as per your convenience within the agreed limit period.
You can get funds as many times as you need during the tenure. No need to reapply each time.
Click the Apply now button on this page.
Fill Out the Online Form: Enter basic business details and the required limit.
Upload Documents: Submit KYC, business proof, and financial records digitally.
Instant Eligibility Check: Our system checks your profile and suggests the best lenders.
Approval and Activation: Once approved, your overdraft limit is activated and ready to use.
HDFC Bank |
| Starting at 9.5% |
| ₹1 lakh - ₹50 lakh |
| Up to 2% of limit |
| Annual renewal available |
ICICI Bank | 9.75% - 12.50% | ₹1 lakh - ₹1 crore | Up to 2% of sanctioned amount | 12 months, renewable |
Axis Bank | Linked to Repo Rate | Up to ₹50 lakh | 1% - 2% of limit | 12 months, renewable |
Kotak Mahindra Bank | Starting at 10% | ₹1 lakh - ₹1 crore | Up to 2.5% | Annual limit review |
Note: Interest rates and fees can change. It is based on your business profile and lender policy.
Minimum annual turnover as per lender requirements
Credit Score
Preferably 700+ for unsecured overdrafts
Banking History
Good account statement for the last 6 to 12 months
Documents Required for Business Overdraft
Applying for a business overdraft loan online is simple and paperless with My Mudra. Keep these ready for faster approval: