What is Overdraft facility?

Introduction

A Financially stable society is the need of an hour and My Mudra is just making a step forward toward the much-needed change.

There are times when people run out of money and find credit cards or personal loan a better option to quench their financial needs. Keeping yourself open and acquainted with all the options should be a quality of a well-aware person. The interest rate on an overdraft facility is usually higher than that of a regular loan and hence the decision of opting for OD should be taken wisely. Taking a loan is not a burden on your shoulders if taken wisely it can become a planned decision that can help you to fulfill your dreams.

What is overdraft facility? 

Overdraft facility or commonly called as OD is a type of loan that allows the borrowers to take money to satiate immediate financial needs. The lender is offering overdraft facility on different rate of interest. But it should be kept in mind that overdraft facility interest rate is higher than any other loan. Overdraft facility can be taken up by anyone who do not have enough funds in their accounts and facing unannounced expenses. 

Overdraft facillity loan can be a one-stop solution for the borrowers to quench their financial thirst easily. Interest rate of overdraft facility has recently increased because of hike in repo rate. Boost your CIBIL score to increase chances of getting an over draft facility. Never let money become hurdle in your life and dreams. 

How to get overdraft facility?

OverDraft facility meaning is quite clear with the term, it is a loan provided by the lenders when you are low on money. Applying for a overdraft facility is cakewalk with My Mudra. Get your OD approved with three easy steps mentioned below. 

·      Apply on the website or click on www.mymudra.com.

·     Get your documentation done within a day.

·    Enjoy quick disbursal of OD within a day at lowest interest rate.

 Benefits of the OverDraft Facility? 

There are certains benefits that overdraft loans offer to the customers. 

·      The are one-stop solution for the people who are in need of quick cash. 

·      Overdraft facility interest rate is lower than that of payday loans and credit cards.

·      Overdraft loans are easier for approval than any other loan. 

·      The overdraft loans can be applied and approved in three easy steps with My Mudra.

·     My Mudra is offering lowest interest rates on overdraft loans. 

 Drawbacks of the OverDraft Facility

Every coin has two sides, there are certain drawbacks of overdraft facility. Listing below some of the minus points of Overdraft loans. 

·      Overdraft loan can proved to be an expensive choice if they are being used frequently. 

·      They can be hard to control and might lead to more debts if not utilized properly. 

·      Overdraft facility has some additional fees and penalties. Hence, it is advised to read all the terms and conditions before applying for the overdraft facility. 

Eligibility criteria for overdraft facility

Overdraft limit is usually applied by the businesses to meet their daily working capital requirements or individuals to who are need of quick cash. Over draft limt can be availed by the following people. 

·      Individuals having citizenship of India.

·      Retired people who has Indian citizenship.

·    Private and Public limited companies.

Interest rate of OverDraft facility

The interest rate of overdraft facility for the top banks are mentioned below in the table. 

Conclusion

My Mudra is your one-stop solution for all the financial needs. We are here to change the perspective of people who are taking loan as a burden. Loan is a planned decision with My Mudra. OverDraft limit is a smart switch from credit cards and personal loans for the people who require quick cash with low interest rates. Get your OD easily within a day from My Mudra and satiate your financial hunger swiftly.