You never know when a financial emergency can make your life full of stress. Overdraft accounts can solve short-term financial problems instantly and also can help reduce financial monthly outflow. However, it is important to know when an overdraft is useful and when it can be disastrous.
Overdraft is a credit facility that allows the individual to withdraw an amount as and when you need. You can repay the withdrawn amount whenever you have the surplus amount. Hence, it is one of the most preferred credit options availed to meet any kind of financial emergencies, short or long term requirements or a financial backup. Apply for overdraft facility in the form of a Tata Capital Flexi Loan. The flexi loan facility has all the required features of an unsecured OD loan.
Why apply Tata Capital Overdraft @ SalariedLoans
- Low Interest Rates: We Negotiate with Tata Capital to get you the best Overdraft Facility interest rates.
- Customized Offers: SalariedLoans.com has partnered with Tata Capital to give you customized Overdraft Facility offers.
Overdraft Interest Rates Jan 2021
|Interest rate||Salaried – 13.99% to 17%|
|Processing Charges||As low as ₹1.5% upto 2.50% of the loan amount subject to profile.|
|Insurance||As per age and OD limit|
Tata Capital OverDraft facilities
- Can be availed quickly Overdrafts work great as short term loans. In fact, by utilising the overdraft facility, you can save quite some money in interest payments. This is because, unlike regular loans, the interest is calculated only on funds that are utilised. So if you are in need of short-term funds, it may be wise to opt for an overdraft instead of a regular Personal loan. Due to the minimal paperwork and its flexible nature, overdrafts are quite useful in emergencies. But you must ensure that the amount is incoming and that you will be able to clear it within a few days.
- Manage cash flows With an overdraft account you can manage cash flow by paying only interest on the utilized amount and self-schedule to pay the utilized amount at your convenience. The repaid principle can be withdrawn back any time which gives you the financial backup in emergencies. For example, you receive your salary at the end of every month, whereas if your credit card due or any emergency comes in the mid of month, an overdraft facility can help to manage cash flow gaps in such situations
- Emergencies Sometimes you or your family member may have the immediate requirements of funds for whatsoever purpose, Instead of looking for credit elsewhere, you can simply withdraw funds from your overdraft account. This way, you can handle any kind of financial emergencies
- Working capital requirements / Startups Many small businesses fail because they are not able to manage their working capital needs. It doesn’t matter whether a company has brilliant plans five years down the line if it doesn’t have the money to keep the machines running today. Some companies wrongly assume that taking an overdraft can solve their problems. Well, it could possibly help for a day or two, but once the money dries up, it is back to square one. There is no replacement for good business sense.
Tata Capital Overdrafts work great as short-term funds; but only if you are certain about repayment. Otherwise, the interest rates can eat up a big chunk of the company’s income. In such situations, a working capital loan is a better option than an overdraft. So the next time you are in a dilemma about whether to opt for an overdraft or not, keep the above tips in mind.
Tata Capital Overdraft Eligibility Criteria
- Salaried individuals-Any individuals working in a company with a net take-home salary of 40,000 per month getting credited in the bank account.
- Self Employed Professionals –Doctors, Chartered accountants, Company secretaries, and architects, etc. Tata Capital Overdraft would also fund the practicing professions
- Self Employed Non Professions Traders and Manufacturers, Retailers, Directors, Proprietors, Service providers ,etc..
- Entities Partnerships, LLP’s, Private Limited Companies, and closely held limited companies.
Business Loan Fees & Interest Rates
|Customized Interest Rates||1.25% to 1.5% per month|
|Processing Fees||1.5% to 2.5%|
|Loan Tenure||up to 84 months|
|Eligibility Criteria||> ₹ 36,000 net takehome per Month|
|Loan Amount||Up to ₹ 30,00,000|
Required Documents for Bajaj Overdraft Account
Bajaj Overdraft Account requires a set of documents for authentication purposes for your personal loan:
- Photo Identity Proof: – (Self-attested copy of any one document) Passport, PAN Card, Voter Identity Card, Driving License, Aadhaar Card
- Address Proof:- (Self-attested copy of any one document) Ration Card, Passport, Bank Account Statement, Aadhaar Card, Driving License, Electricity Bill, Telephone Bill, Sale Deed/ Property Purchase Agreement (for owned properties)
- Income Proof – (Self-attested copy of any one document)
- For Salaried Individuals: – Last 3 months/6 months bank statement (dependent on scheme) showing salary credits, Latest 3 months Salary Slip
- For Self-Employed Individuals: 2 years ITR, P&L and Balance Sheet for the last 2 years, Last 3 Months Bank Statement, Ownership Proof, Business Proof (Self-attested copy of any one document)
- For Self-Employed Individuals:-Qualification Certificate/Certificate of Practice (COP), Shop Act License/ MOA & AOA/ Sales Tax/ Vat registration/ Partnership Deed
How to Apply
- Online Application: – You can apply for a personal loan online by filling a form on the website. By applying for a personal loan online you can get your eligible loan amount instantly.
- Document Submission: The relationship manager will fix up an appointment to come to your premises and collect the requisite documents for quick personal loans.
- Verification: After your documents have been collected, your personal loan application will be verified; this may involve a personal discussion with you.
- Approval & Disbursal: If the reports are satisfactory after verification, your loan will be approved and the money will be deposited in the same bank account for which the statement has been provided.
Check your Eligibility
Difference between Tata Capital Overdraft Facility and Regular Loan
Any indivisual who is in search of urgent funds from banks should know that Overdraft Facility is best option. It is difficult decide whether Normal Loan is best or Overdraft facility is best, the below information clears the difference between Normal Loan and Overdraft Facility:
- Funds Withdrawal:An overdraft facility is a form of credit which is offered to an Salaried individual based on a current account. In addition, the amount which is withdrawn varies depending on the customer’s requirement. However, a regular personal loan talks about a fixed amount which is borrowed from a specific bank highlighting a stated repayment duration.
- Rate of Interest:- Considering an overdraft, the rate of interest is charged specifically on the borrowed overdraft amount and not on the stated limit; however, for a regular loan the rate of interest is applied on the whole amount borrowed, regardless if it is completely utilized or not.
- Duration: An overdraft is accessed for a lesser duration and the candidate isn’t allowed to borrow large amounts due to limits on credit. On the other hand, a Personal loan is accessible for a longer period, ranging from 3 to 5 years, with the availability to take large sums
- Flexible Repayment: Overdraft Accountis flexible to repayment. You can call it more flexible when considering the payment scheme, this payment option would be made possible in a lump sum which can be shut anytime. With regular personal loans, EMIs are involved that need to be paid on a schedule. If the EMI payments are not made timely, it can harm the customer’s credit ratings
Know your Offer
Let’s get started with your basic information
The minimum annualized percentage rate is 13% and the maximum annualized percentage rate is 26% with a flexible repayment period of 12 to 60 months. Also, full repayment in 30 days or less is not allowed after which there will a foreclosure charge of 0-4%.
Consider a salaried customer avails an Overdraft Loan of ₹1 Lakh at an interest rate of 15.25%. The lenders also charge a processing fee, that needs to be paid to get the loan processed and is usually 0-4% of the loan amount. Consider the processing fee to be ₹2250 plus the flexifee for a tenure of 60 months. Then, the total interest payable is on the usage of 1 lakh is 1,270. The EMI will be ₹2,326 per month on a personal loan.