Overdraft loan is the most sought after funding option for businesses. One can avail it from banks and NBFCs and pay back the borrowed amount as per their convenience. There is no stringent EMI schedule and the interest is calculated on a daily basis on the amount utilised. It is an ultimate funding solution for businesses who sometimes feel the shortage of funds but are sure of the repayment ability.
Apart from using the borrowed amount for business purpose, one can also use it for meeting out personal financial emergencies. It is a better option than a personal loan.
HOW DOES THE OVERDRAFT WORK?
Working of an overdraft loan is simple. It is a loan product which allows the borrowers to withdraw the extra money from their account beyond their own money. The rate of interest is charged on the extra amount only and is calculated on a daily basis. The borrower can choose to repay the loan as per their convenience and there is no fixed EMI schedule. One can deposit the borrowed money directly into their account to repay it. As and when the applicant avails this facility and withdraws some amount, the outstanding goes positive. And as the money is deposited back in the account the outstanding decreases. And as the outstanding goes zero, the applicant becomes eligible again to reuse the overdraft. Thus, it is like returning the borrowed amount to reuse it later.
However, it is advisable to repay back the borrowed amount as early as possible to avoid hampering their credit score. Being disciplined and diligent in the repayment of loan also results in getting your credit limit increased so that you can withdraw more in the need of the hour.
APPLYING FOR A OVERDRAFT ONLINE
With technology changing the façade of banking, one can apply for a simple overdraft loan from anywhere in India. However, it is very important to choose the lender who offers the most lucrative deal. Online medium helps the borrowers to make the most informed decision. They can chalk out the offerings of different lenders by visiting their digital platforms. There is no requirement of visiting the physical branch of the lenders for applying for an overdraft. One can apply for the loan through the online portal of either the chosen lender or through LoansJagat platform which aids in loan processing and document submission through their platform. Their channel is transparent and convenient in approach and one also gets assistance from their loan experts which expedite your application process.
Benefits of Applying for Overdraft Through an Online Platform:
- An easy and convenient way to apply for the loan. One can also compare different lenders and their offerings and make the best choice.
- Saves a lot of time. The borrower now doesn’t have to waste time to visit physical branches of the lenders. Instead, they can apply for a loan at any particular time and from anywhere using their smartphones and computers.
- If applying through online channels like that of LoansJagat, then one can compare over 40 key lenders under one roof and choose the lender which best meets his needs and requirements.
- While comparing on a platform like LoansJagat one can look at the rate of interest, amount, penalties, amount and tenure to find the best loan for them.
- The processing of the overdraft facility is quick.
- One can apply for the loan and also submit the required documents through an online medium.
Overdraft facility is a boon for business owners. The benefits mentioned above makes it even more attractive. But before one applies for the overdraft loan, the following pointers must be considered:
- Checking the required documents and keep them handy to fasten the loan approval process.
- Keeping a check on one’s credit score is very important as it determines the approval of rejection of the overdraft loan.
- Be sure of their financial ability to repay back the borrowed money.
- Read the terms and conditions between the lines to avoid any misunderstanding later.
Thus, buck up your business and ensure that the shortage of funding never comes in the way of taking it to the pinnacle of success. Business loan and personal loan in Bangalore and other major cities are available at a click of a button so that funding never becomes a pothole on your way to reaching heights.