Personal Overdraft Loan: Your Flexible Credit Lifeline
Get instant access to funds with a personal overdraft loan. My Mudra’s personal loan overdraft facility offers flexible credit when you need it most. Pay interest only on what you use — fast, flexible, and stress-free.
Last Updated: 19 June 2025
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Personal Overdraft Loan EMI Calculator
What is a Personal Overdraft Loan?
A personal overdraft loan is a flexible credit line linked to your bank account. Think of it as a financial cushion. If your balance drops to zero, you can still withdraw cash up to a pre-approved limit. You only pay interest on the amount you actually use, not the entire limit. It’s perfect for those times when expenses pop up unexpectedly, or when you need quick access to funds without the hassle of a traditional loan.
For example:
Suppose you have a ₹2 lakh overdraft limit but use only ₹50,000. You’ll pay interest only on ₹50,000, not the whole limit. When you repay, your limit is restored. It’s like having a reusable safety net for your finances.
Key Features and Benefits of Personal Overdraft Loan
Flexible Withdrawals:
Draw as much as you need, within your approved limit, whenever you need it. No need to borrow more than required or exhaust your limit at once.
Interest on Utilised Amount:
You pay interest only on what you use, not the full overdraft limit. This keeps costs low if you use less.
No Fixed EMI:
Repay at your convenience. There’s no pressure of a fixed monthly installment — pay back when you have surplus funds.
Quick Access to Funds:
With My Mudra, you can get an instant overdraft loan approval and start using your funds in just a few hours.
Reusable Credit:
Once you repay, your limit is restored. Use your overdraft as many times as you need during the tenure.
No Collateral Required:
Most personal overdraft loans are unsecured. No need to pledge gold, property, or other assets.
Online Application and Management:
Apply, withdraw, and repay — all through a digital platform. No need to visit a branch.
Customizable Tenure:
Choose a tenure that fits your needs, from a few months to several years.
Eligibility Criteria for Personal Overdraft Loan Facility
To qualify for a personal loan overdraft facility with My Mudra, you typically need to:
- Be an Indian resident, aged 23 to 65 years
- Have a stable monthly income (salaried or self-employed)
- Maintain a good credit score (usually 700+)
- Provide valid KYC documents (Aadhaar, PAN, etc.)
- Have a bank account with regular transactions
Some lenders may have additional requirements based on your profile.
Documents Required Personal Overdraft Loan
When you apply for overdraft facility, keep these documents ready for a smooth process:
- Identity Proof: PAN card, Aadhaar card, passport, or driving license
- Address Proof: Utility bill, passport, voter ID, or Aadhaar card
- Income Proof: Salary slips (last 3-6 months), bank statements, or ITR for self-employed
- Business Proof (if self-employed): GST registration, business profile, or Udyam Registration (if applicable)
- Bank Statements: Last 3-6 months’ statements from your main account
How to Apply for Overdraft Facility Online?
Confused between a Personal Loan and a Personal Overdraft Loan?
Compare a regular personal loan with a personal overdraft loan to see which offers more flexibility, savings, and control over your borrowing.
| Feature | Personal Loan | Personal Overdraft Loan |
|---|---|---|
|
Disbursal |
Lump sum | Withdraw as needed |
|
Interest |
On full amount | Only on amount used |
|
Repayment |
Fixed EMI | Flexible, pay as you go |
|
Tenure |
Fixed (1-5 years) | Flexible (1-5 years or less) |
|
Usage |
One-time | Reusable credit line |
|
Collateral |
Usually unsecured | Usually unsecured |
|
Prepayment Charges |
May apply | Usually none or nominal |
|
Application Process |
Online/Offline | Mostly online |
Plan Your Borrowing with Our Overdraft Calculator
Not sure how much you’ll pay if you use your personal Overdraft loan? Use our EMI calculator:
- Enter the amount you plan to withdraw.
- Input the interest rate (rates may vary based on your profile).
- Choose your preferred repayment tenure.
The calculator instantly shows your estimated monthly interest and total repayment. This helps you plan your finances and avoid surprises.
Why Choose My Mudra for Personal Overdraft Facility?
At My Mudra, we know that life doesn’t always go as planned. Our personal loan OD facility is designed to give you:
- Speed: Instant overdraft loan approvals and quick disbursal.
- Flexibility: Withdraw, repay, and reuse your limit as needed.
- Transparency: No hidden charges, clear terms, and upfront communication.
- 100% Digital: Apply, manage, and repay all online, from anywhere.
- Support: Friendly experts to guide you at every step.
A personal overdraft loan is more than just credit — it’s your financial backup. Whether you're salaried or self-employed, enjoy flexible withdrawals, pay interest only on what you use, and reuse your limit anytime. At My Mudra, we make borrowing smart, fast, and stress-free
Don’t let money hold you back. Apply online for My Mudra’s personal loan overdraft facility and take control of your finances today.
Personal Overdraft Loan FAQs
What is a personal overdraft loan?
A personal overdraft loan is a flexible credit line linked to your account. You can withdraw funds beyond your balance, up to a set limit, and pay interest only on what you use.
What is the interest rate on overdraft loans?
Interest rates depend on your credit profile and lender. They’re usually a bit higher than regular loans but you pay interest only on the amount used.
Can I prepay my overdraft loan?
Yes, you can prepay anytime. Most lenders allow flexible repayments with little or no prepayment charges.
What is the eligibility to get a personal overdraft?
Eligibility includes being 23-65 years old, having a steady income, a good credit score, and valid KYC documents.
How to apply for overdraft?
Check your eligibility, gather documents, fill out the online application with My Mudra, and get your limit approved.
Hear from our Personal Loan Overdraft Customers
Rohit Mehta, Delhi
Verified CustomerFlexible Usage
I needed funds urgently for my sister’s wedding, but didn’t want a full loan. My Mudra’s overdraft facility let me borrow only what I needed — super convenient!
Shruti Nair, Mumbai
Verified CustomerInterest Only on What You Use
What I love most is paying interest only on the amount I use. It feels more like a safety net than a burden. Thank you, My Mudra!
Nitika S, Jaipur
Verified CustomerPerfect for Self-Employed
As a freelancer, I often need quick funds between projects. My Mudra’s personal OD loan gives me that freedom without fixed EMIs.
Amit Ghosh, Kolkata
Verified CustomerSeamless Online Process
The entire process — from application to approval — was 100% online. I didn’t even have to visit a branch. So smooth and hassle-free!
